Comparing USCB Financial (NASDAQ:USCB) and First Community (NASDAQ:FCCO)

First Community (NASDAQ:FCCO – Get Free Report) and USCB Financial (NASDAQ:USCB – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

61.3% of First Community shares are held by institutional investors. Comparatively, 61.3% of USCB Financial shares are held by institutional investors. 5.9% of First Community shares are held by company insiders. Comparatively, 49.5% of USCB Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Earnings & Valuation

This table compares First Community and USCB Financial”s gross revenue, earnings per share and valuation.

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for First Community and USCB Financial, as reported by MarketBeat.com.

First Community currently has a consensus target price of $34.00, indicating a potential upside of 21.00%. USCB Financial has a consensus target price of $22.00, indicating a potential upside of 19.50%. Given First Community’s higher possible upside, equities analysts plainly believe First Community is more favorable than USCB Financial.

Risk & Volatility

First Community has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, USCB Financial has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Dividends

First Community pays an annual dividend of $0.64 per share and has a dividend yield of 2.3%. USCB Financial pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. First Community pays out 25.9% of its earnings in the form of a dividend. USCB Financial pays out 38.5% 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 Community has raised its dividend for 4 consecutive years and USCB Financial has raised its dividend for 2 consecutive years.

Summary

USCB Financial beats First Community on 12 of the 18 factors compared between the two stocks.

About First Community

(Get Free Report)

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.

About USCB Financial

(Get Free Report)

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.