Financial Survey: TriCo Bancshares (NASDAQ:TCBK) versus First Community (NASDAQ:FCCO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Community	19.55%	13.73%	1.24%
TriCo Bancshares	25.10%	10.47%	1.41%

Volatility and Risk

First Community has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Dividends

First Community pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.7%. First Community pays out 23.8% of its earnings in the form of a dividend. TriCo Bancshares pays out 33.4% 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 has raised its dividend for 4 consecutive years and TriCo Bancshares has raised its dividend for 12 consecutive years. TriCo Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares First Community and TriCo Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Community	$91.36 million	3.41	$19.20 million	$2.86	11.57
TriCo Bancshares	$538.91 million	3.13	$121.56 million	$4.31	12.23

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

Insider and Institutional Ownership

61.3% of First Community shares are owned by institutional investors. Comparatively, 59.1% of TriCo Bancshares shares are owned by institutional investors. 8.8% of First Community shares are owned by company insiders. Comparatively, 4.9% of TriCo Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First Community and TriCo Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community	0	0	2	0	3.00
TriCo Bancshares	0	5	2	0	2.29

First Community presently has a consensus target price of $37.50, indicating a potential upside of 13.29%. TriCo Bancshares has a consensus target price of $57.62, indicating a potential upside of 9.30%. Given First Community’s stronger consensus rating and higher probable upside, equities research analysts plainly believe First Community is more favorable than TriCo Bancshares.

Summary

TriCo Bancshares beats First Community on 9 of the 16 factors compared between the two stocks.

About First Community

First Community Corporation operates as the bank holding company for First Community Bank that provides various commercial and retail banking products and services to small-to-medium sized businesses, professionals, and individuals. The company operates through Commercial and Retail Banking, Mortgage Banking, and Investment Advisory and Non-Deposit segments. Its deposit products include checking, NOW, savings, and individual retirement accounts; and demand deposits, as well as other time deposits, such as daily money market accounts and longer-term certificates of deposit. The company's loan portfolio comprises commercial loans that include secured and unsecured loans for working capital, business expansion, and the purchase of equipment and machinery; consumer loans, including secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; real estate construction and acquisition loans; and fixed and variable rate mortgage loans. It also provides online banking, internet banking, cash management, safe deposit boxes, direct deposit of payroll and social security checks, and automatic drafts for various accounts. In addition, the company offers non-deposit investment products and other investment brokerage services; VISA and MasterCard credit card services; investment advisory services; and insurance services. The company was incorporated in 1994 and is headquartered in Lexington, South Carolina.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.