Analyzing Fvcbankcorp (NASDAQ:FVCB) and First Community Bancshares (NASDAQ:FCBC)

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

Volatility and Risk

Fvcbankcorp has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Insider and Institutional Ownership

43.6% of Fvcbankcorp shares are held by institutional investors. Comparatively, 35.0% of First Community Bancshares shares are held by institutional investors. 11.2% of Fvcbankcorp shares are held by insiders. Comparatively, 3.7% of First Community Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Fvcbankcorp and First Community Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fvcbankcorp	0	1	2	0	2.67
First Community Bancshares	0	0	1	0	3.00

Fvcbankcorp currently has a consensus target price of $19.00, indicating a potential upside of 9.89%. Given Fvcbankcorp’s higher possible upside, equities research analysts plainly believe Fvcbankcorp is more favorable than First Community Bancshares.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fvcbankcorp	$122.03 million	2.55	$22.06 million	$1.28	13.51
First Community Bancshares	$161.08 million	5.19	$48.79 million	$2.65	16.72

First Community Bancshares has higher revenue and earnings than Fvcbankcorp. Fvcbankcorp 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.

Dividends

Fvcbankcorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.6%. First Community Bancshares pays an annual dividend of $1.24 per share and has a dividend yield of 2.8%. Fvcbankcorp pays out 21.9% of its earnings in the form of a dividend. First Community Bancshares pays out 46.8% 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. First Community Bancshares has raised 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fvcbankcorp	18.85%	9.22%	1.01%
First Community Bancshares	25.89%	10.44%	1.60%

Summary

First Community Bancshares beats Fvcbankcorp on 12 of the 17 factors compared between the two stocks.

About Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

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.