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

Dividends

First Community Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Spirit of Texas Bancshares does not pay a dividend. First Community Bankshares has increased its dividend for 7 consecutive years.

Valuation and Earnings

This table compares First Community Bankshares and Spirit of Texas Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Community Bankshares $124.74 million 4.19 $36.34 million N/A N/A
Spirit of Texas Bancshares $67.83 million 4.49 $9.98 million $1.05 21.06

First Community Bankshares has higher revenue and earnings than Spirit of Texas Bancshares.

Institutional and Insider Ownership

41.9% of First Community Bankshares shares are held by institutional investors. Comparatively, 29.4% of Spirit of Texas Bancshares shares are held by institutional investors. 3.4% of First Community Bankshares shares are held by company insiders. Comparatively, 15.0% of Spirit of Texas Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

First Community Bankshares has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Spirit of Texas Bancshares has a beta of -0.23, suggesting that its share price is 123% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Community Bankshares 0 0 0 0 N/A
Spirit of Texas Bancshares 0 0 3 0 3.00

Spirit of Texas Bancshares has a consensus target price of $22.21, indicating a potential upside of 0.44%. Given Spirit of Texas Bancshares’ higher probable upside, analysts plainly believe Spirit of Texas Bancshares is more favorable than First Community Bankshares.

Profitability

This table compares First Community Bankshares and Spirit of Texas Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Community Bankshares 29.57% 11.11% 1.64%
Spirit of Texas Bancshares 15.80% 7.76% 1.06%

Summary

First Community Bankshares beats Spirit of Texas Bancshares on 9 of the 14 factors compared between the two stocks.

First Community Bankshares Company Profile

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 arrangements; commercial, consumer, and real estate mortgage loans, as well as lines of credit; various credit and debit cards, and automated teller machine card services; and corporate and personal trust services. The company also provides wealth management services, including 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. As of December 31, 2018, the company operated 44 branches, including 19 branches in Virginia, 18 branches in West Virginia, 5 branches in North Carolina, and 2 branches in Tennessee. First Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.

Spirit of Texas Bancshares Company Profile

Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals. It offers checking accounts, money market accounts, savings accounts, certificates of deposit, and IRA accounts. The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner-occupied commercial real estate loans, other commercial real estate loans, and multifamily loans and farmland; consumer loans and leases; and municipal and other loans. In addition, it offers debit and credit cards, safe deposit boxes, wire transfer and treasury management services, and online banking services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. The company operates through a network of 23 full-service branches located in the Houston, Dallas/Fort Worth, and Bryan/College Station metropolitan areas, as well as North Central Texas. Spirit of Texas Bancshares, Inc. was founded in 2008 and is headquartered in Conroe, Texas.

Receive News & Ratings for First Community Bankshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for First Community Bankshares and related companies with MarketBeat.com's FREE daily email newsletter.