First Community Bankshares (NASDAQ:FCBC – Get Free Report) and Colony Bankcorp (NASDAQ:CBAN – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a summary of current ratings and price targets for First Community Bankshares and Colony Bankcorp, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
First Community Bankshares | 0 | 1 | 0 | 0 | 2.00 |
Colony Bankcorp | 0 | 0 | 0 | 0 | N/A |
First Community Bankshares currently has a consensus target price of $38.00, suggesting a potential downside of 14.36%. Given First Community Bankshares’ higher possible upside, research analysts clearly believe First Community Bankshares is more favorable than Colony Bankcorp.
Dividends
Insider and Institutional Ownership
35.0% of First Community Bankshares shares are held by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are held by institutional investors. 3.7% of First Community Bankshares shares are held by insiders. Comparatively, 6.6% of Colony Bankcorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares First Community Bankshares and Colony Bankcorp’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
First Community Bankshares | 28.30% | 11.33% | 1.74% |
Colony Bankcorp | 13.03% | 9.22% | 0.76% |
Earnings and Valuation
This table compares First Community Bankshares and Colony Bankcorp’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
First Community Bankshares | $174.62 million | 4.66 | $48.02 million | $2.71 | 16.37 |
Colony Bankcorp | $113.57 million | 2.25 | $21.75 million | $1.25 | 11.64 |
First Community Bankshares has higher revenue and earnings than Colony Bankcorp. Colony Bankcorp is trading at a lower price-to-earnings ratio than First Community Bankshares, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
First Community Bankshares has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Summary
First Community Bankshares beats Colony Bankcorp on 10 of the 15 factors compared between the two stocks.
About First Community Bankshares
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 Colony Bankcorp
Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.
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