Financial Survey: First Community (NASDAQ:FCCO) versus Third Coast Bancshares (NASDAQ:TCBX)
by Jessica Moore · The Cerbat GemThird Coast Bancshares (NASDAQ:TCBX – Get Free Report) and First Community (NASDAQ:FCCO – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Valuation & Earnings
This table compares Third Coast Bancshares and First Community”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Third Coast Bancshares | $197.80 million | 2.81 | $47.67 million | $3.56 | 11.22 |
| First Community | $103.43 million | 2.28 | $13.95 million | $2.40 | 12.77 |
Third Coast Bancshares has higher revenue and earnings than First Community. Third Coast Bancshares is trading at a lower price-to-earnings ratio than First Community, indicating that it is currently the more affordable of the two stocks.
Dividends
Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 42.2%. First Community pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Third Coast Bancshares pays out 473.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Community pays out 26.7% of its earnings in the form of a dividend. First Community has raised its dividend for 4 consecutive years.
Profitability
This table compares Third Coast Bancshares and First Community’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Third Coast Bancshares | 16.30% | 12.05% | 1.17% |
| First Community | 16.69% | 12.46% | 0.94% |
Risk and Volatility
Third Coast Bancshares has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, First Community has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Third Coast Bancshares and First Community, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Third Coast Bancshares | 0 | 2 | 2 | 1 | 2.80 |
| First Community | 0 | 1 | 3 | 1 | 3.00 |
Third Coast Bancshares currently has a consensus target price of $42.67, indicating a potential upside of 6.79%. First Community has a consensus target price of $29.67, indicating a potential downside of 3.21%. Given Third Coast Bancshares’ higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than First Community.
Insider and Institutional Ownership
36.9% of Third Coast Bancshares shares are held by institutional investors. Comparatively, 61.3% of First Community shares are held by institutional investors. 10.3% of Third Coast Bancshares shares are held by insiders. Comparatively, 5.9% of First Community shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
First Community beats Third Coast Bancshares on 9 of the 17 factors compared between the two stocks.
About Third Coast Bancshares
Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.
About First Community
First Community Corporation operates as the bank holding company for First Community Bank that provides various commercial and retail banking products and services to small-to-medium sized businesses, professionals, and individuals. The company operates through Commercial and Retail Banking, Mortgage Banking, and Investment Advisory and Non-Deposit segments. Its deposit products include checking, NOW, savings, and individual retirement accounts; and demand deposits, as well as other time deposits, such as daily money market accounts and longer-term certificates of deposit. The company's loan portfolio comprises commercial loans that include 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 online banking, internet banking, cash management, safe deposit boxes, 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; investment advisory services; and insurance services. The company was incorporated in 1994 and is headquartered in Lexington, South Carolina.