Reviewing First Community Bancshares (NASDAQ:FCBC) and Trustmark (NASDAQ:TRMK)

Trustmark (NASDAQ:TRMK) and First Community Bancshares (NASDAQ:FCBC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Dividends

Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. First Community Bancshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.0%. Trustmark pays out 27.0% of its earnings in the form of a dividend. First Community Bancshares pays out 46.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Trustmark has increased its dividend for 1 consecutive years and First Community Bancshares has increased its dividend for 13 consecutive years. First Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Trustmark has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Trustmark and First Community Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	3	3	0	2.50
First Community Bancshares	0	0	1	0	3.00

Trustmark currently has a consensus target price of $43.83, suggesting a potential upside of 4.38%. Given Trustmark’s higher possible upside, research analysts plainly believe Trustmark is more favorable than First Community Bancshares.

Insider & Institutional Ownership

67.6% of Trustmark shares are owned by institutional investors. Comparatively, 35.0% of First Community Bancshares shares are owned by institutional investors. 1.7% of Trustmark shares are owned by company insiders. Comparatively, 3.7% of First Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Trustmark and First Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trustmark	19.95%	10.77%	1.20%
First Community Bancshares	26.32%	10.17%	1.59%

Valuation & Earnings

This table compares Trustmark and First Community Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$1.12 billion	2.20	$224.13 million	$3.71	11.32
First Community Bancshares	$185.42 million	4.25	$48.79 million	$2.66	15.52

Trustmark has higher revenue and earnings than First Community Bancshares. Trustmark is trading at a lower price-to-earnings ratio than First Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

Trustmark beats First Community Bancshares on 9 of the 17 factors compared between the two stocks.

About Trustmark

Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States. The company operates through three segments: General Banking, Wealth Management, and Insurance. It offers checking, savings, and money market accounts; certificates of deposits and individual retirement accounts; financing for commercial and industrial projects, income-producing commercial real estate, owner-occupied real estate, and construction and land development; and installment and real estate loans, and lines of credit, as well as treasury management services. The company also provides mortgage banking services, including construction financing, production of conventional and government-insured mortgages, and secondary marketing and mortgage servicing. In addition, it provides wealth management and trust services, such as administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, and investment management services. Further, the company offers business insurance products and services for medical professionals, construction, manufacturing, hospitality, real estate, and group life and health plans; and life and health insurance, and personal line policies for individual customers. Trustmark Corporation was founded in 1889 and is headquartered in Jackson, Mississippi.

About First Community Bancshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.