Contrasting First Financial Bankshares (FFIN) & First Community (FCCO)

First Financial Bankshares (NASDAQ:FFIN) and First Community (NASDAQ:FCCO) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

First Financial Bankshares has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, First Community has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Dividends

First Financial Bankshares pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. First Community pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. First Financial Bankshares pays out 49.4% of its earnings in the form of a dividend. First Community pays out 36.7% 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 Financial Bankshares has raised its dividend for 7 consecutive years and First Community has raised its dividend for 5 consecutive years. First Community is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for First Financial Bankshares and First Community, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Financial Bankshares 1 4 0 0 1.80
First Community 0 0 0 0 N/A

First Financial Bankshares currently has a consensus price target of $48.20, indicating a potential downside of 16.94%. Given First Financial Bankshares’ higher probable upside, equities analysts plainly believe First Financial Bankshares is more favorable than First Community.

Earnings & Valuation

This table compares First Financial Bankshares and First Community’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Financial Bankshares $336.99 million 11.65 $120.37 million $1.70 34.14
First Community $41.79 million 3.92 $5.81 million $1.09 19.73

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

Profitability

This table compares First Financial Bankshares and First Community’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Bankshares 37.86% 13.29% 1.70%
First Community 17.48% 9.59% 0.94%

Institutional & Insider Ownership

53.8% of First Financial Bankshares shares are held by institutional investors. Comparatively, 52.2% of First Community shares are held by institutional investors. 4.8% of First Financial Bankshares shares are held by insiders. Comparatively, 7.4% of First Community 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.

Summary

First Financial Bankshares beats First Community on 12 of the 15 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services primarily in Texas. The company accepts checking, savings, and time deposits; and offers real estate, commercial, agricultural, and consumer loans to businesses, professionals, individuals, and farm and ranch operations. It also provides automated teller machines, drive-in and night deposit, safe deposit facilities, remote deposit capture, Internet banking, mobile banking, payroll cards, funds transmitting, and other customary commercial banking services. In addition, the company offers personal trust services, including wealth management, administration of estates, testamentary trusts, revocable and irrevocable trusts, and agency accounts; and securities brokerage services, as well as administers retirement and employee benefit accounts, such as 401(k) profit sharing plans and IRAs;. As of December 31, 2017, it had 69 financial centers in Texas, including Abilene, San Angelo, Weatherford, Cleburne, Conroe, Stephenville, Granbury, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Clyde, Cut and Shoot, Decatur, Eastland, Fort Worth, Glen Rose, Grapevine, Hereford, Huntsville, Keller, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, Southlake, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Willis, Willow Park, Kingwood, Fulshear, El Campo, and Palacios. First Financial Bankshares, Inc. was founded in 1890 and is based in Abilene, Texas.

About First Community

First Community Corporation operates as the bank holding company for First Community Bank which offers various commercial and retail banking products and services to small-to-medium sized businesses, professional concerns, and individuals. The company operates through four segments: Commercial and Retail Banking, Mortgage Banking, Investment Advisory and Non-Deposit, and Corporate. Its deposit products include demand deposit accounts, checking accounts, NOW accounts, and savings accounts, as well as other time deposits, such as daily money market accounts and longer-term certificates of deposits. The company's loan portfolio comprises commercial loans that consist of 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 other banking services, which include Internet banking, cash management services, safe deposit boxes, traveler's checks, 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; financial and investment advisory services; and insurance services. It operates 18 full-service offices located in the Lexington County, Richland County, Newberry County, Kershaw County, Greenville County, Anderson County, Pickens County, and Aiken County, South Carolina; and Richmond County, Georgia. First Community Corporation was incorporated in 1994 and is headquartered in Lexington, South Carolina.

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