Head to Head Analysis: First Community Bancshares (NASDAQ:FCBC) and Third Coast Bancshares (NASDAQ:TCBX)

First Community Bancshares (NASDAQ:FCBC) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Risk & Volatility

First Community Bancshares has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Institutional and Insider Ownership

35.0% of First Community Bancshares shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 3.7% of First Community Bancshares shares are owned by company insiders. Comparatively, 10.3% of Third Coast Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares First Community Bancshares and Third Coast 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 Bancshares	$185.42 million	4.12	$48.79 million	$2.66	15.05
Third Coast Bancshares	$207.74 million	2.99	$47.67 million	$3.79	9.95

First Community Bancshares has higher earnings, but lower revenue than Third Coast Bancshares. Third Coast Bancshares 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for First Community Bancshares and Third Coast Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community Bancshares	0	1	0	0	2.00
Third Coast Bancshares	0	2	2	1	2.80

Third Coast Bancshares has a consensus target price of $45.50, suggesting a potential upside of 20.65%. Given Third Coast Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Third Coast Bancshares is more favorable than First Community Bancshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Community Bancshares	26.32%	10.17%	1.59%
Third Coast Bancshares	16.30%	12.05%	1.17%

Dividends

First Community Bancshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.1%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 44.7%. First Community Bancshares pays out 46.6% of its earnings in the form of a dividend. Third Coast Bancshares pays out 445.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Community Bancshares has raised its dividend for 13 consecutive years.

Summary

Third Coast Bancshares beats First Community Bancshares on 10 of the 18 factors compared between the two stocks.

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.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.