Southern First Bancshares (NASDAQ:SFST – Get Free Report) and First Community Bancshares (NASDAQ:FCBC – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Institutional & Insider Ownership
75.0% of Southern First Bancshares shares are held by institutional investors. Comparatively, 35.0% of First Community Bancshares shares are held by institutional investors. 6.9% of Southern First Bancshares shares are held by company insiders. Comparatively, 3.7% 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 stock is poised for long-term growth.
Valuation and Earnings
This table compares Southern First Bancshares and First Community Bancshares”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southern First Bancshares | $224.62 million | 2.58 | $30.37 million | $4.28 | 14.30 |
| First Community Bancshares | $185.42 million | 4.59 | $48.79 million | $2.65 | 17.03 |
First Community Bancshares has lower revenue, but higher earnings than Southern First Bancshares. Southern First 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.
Risk and Volatility
Southern First Bancshares has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Southern First Bancshares and First Community Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southern First Bancshares | 0 | 1 | 2 | 0 | 2.67 |
| First Community Bancshares | 0 | 2 | 1 | 0 | 2.33 |
Southern First Bancshares currently has a consensus target price of $64.00, indicating a potential upside of 4.59%. Given Southern First Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Southern First Bancshares is more favorable than First Community Bancshares.
Profitability
This table compares Southern First Bancshares and First Community Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southern First Bancshares | 15.21% | 9.65% | 0.79% |
| First Community Bancshares | 25.89% | 10.44% | 1.60% |
Summary
Southern First Bancshares beats First Community Bancshares on 8 of the 14 factors compared between the two stocks.
About Southern First Bancshares
Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.
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.
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