Contrasting Bank of Marin Bancorp (BMRC) & First Community Bancshares (FCBC)

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

Dividends

Bank of Marin Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 1.6%. First Community Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Bank of Marin Bancorp pays out 34.8% of its earnings in the form of a dividend. First Community Bancshares pays out 45.9% 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.

Risk and Volatility

Bank of Marin Bancorp has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Bank of Marin Bancorp and First Community Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of Marin Bancorp $84.59 million 5.21 $23.13 million $3.33 21.40
First Community Bancshares $121.79 million 4.12 $25.12 million $1.57 18.83

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

Insider & Institutional Ownership

46.0% of Bank of Marin Bancorp shares are held by institutional investors. Comparatively, 40.4% of First Community Bancshares shares are held by institutional investors. 5.2% of Bank of Marin Bancorp shares are held by company insiders. Comparatively, 3.3% of First Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Bank of Marin Bancorp and First Community Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Marin Bancorp 24.74% 8.85% 1.01%
First Community Bancshares 22.32% 7.67% 1.11%

Analyst Ratings

This is a summary of recent ratings for Bank of Marin Bancorp and First Community Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Marin Bancorp 0 4 0 0 2.00
First Community Bancshares 0 1 0 0 2.00

Bank of Marin Bancorp currently has a consensus target price of $72.75, indicating a potential upside of 2.11%. First Community Bancshares has a consensus target price of $27.00, indicating a potential downside of 8.66%. Given Bank of Marin Bancorp’s higher probable upside, research analysts plainly believe Bank of Marin Bancorp is more favorable than First Community Bancshares.

Summary

Bank of Marin Bancorp beats First Community Bancshares on 10 of the 14 factors compared between the two stocks.

About Bank of Marin Bancorp

Bank of Marin Bancorp (Bancorp) is the holding company for Bank of Marin (the Bank). The Company’s business banking focus is on small to medium-sized businesses, professionals and not-for-profit organizations. The Company operates through 23 offices in Marin, Sonoma, San Francisco, Napa and Alameda counties. It makes international banking services available to its customers indirectly through other financial institutions, with whom it has correspondent banking relationships. The Company offers a range of commercial and retail deposit and lending programs. Its lending categories include commercial real estate loans, commercial and industrial loans, construction financing, consumer loans and home equity lines of credit. The Company offers a range of personal and business checking and savings accounts, and time deposit alternatives.

About First Community Bancshares

First Community Bancshares, Inc. is a financial holding company. The Company provides commercial banking products and services through its subsidiary First Community Bank (the Bank). The Bank operates as First Community Bank in Virginia, West Virginia, and North Carolina and People’s Community Bank, a Division of First Community Bank, in Tennessee. It provides insurance services through its subsidiary First Community Insurance Services, and offers wealth management and investment advice through its Trust Division and subsidiary First Community Wealth Management. Its products include demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans and lines of credit; various credit card, debit card, and automated teller machine card services; corporate and personal trust services; investment management services, and life, health, and property and casualty insurance products.

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