Head-To-Head Analysis: First Community Bancshares (NASDAQ:FCBC) and First Bancorp, Inc (ME) (NASDAQ:FNLC)

First Community Bancshares (NASDAQ:FCBC) and First Bancorp, Inc (ME) (NASDAQ:FNLC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for First Community Bancshares and First Bancorp, Inc (ME), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community Bancshares	0	2	1	0	2.33
First Bancorp, Inc (ME)	0	0	1	0	3.00

Dividends

First Community Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. First Bancorp, Inc (ME) pays an annual dividend of $1.52 per share and has a dividend yield of 4.4%. First Community Bancshares pays out 41.6% of its earnings in the form of a dividend. First Bancorp, Inc (ME) pays out 45.1% 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 Bancshares has increased its dividend for 13 consecutive years and First Bancorp, Inc (ME) has increased its dividend for 6 consecutive years.

Risk & Volatility

First Community Bancshares has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME) has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Insider and Institutional Ownership

35.0% of First Community Bancshares shares are owned by institutional investors. Comparatively, 40.4% of First Bancorp, Inc (ME) shares are owned by institutional investors. 3.7% of First Community Bancshares shares are owned by company insiders. Comparatively, 5.1% of First Bancorp, Inc (ME) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares First Community Bancshares and First Bancorp, Inc (ME)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Community Bancshares	$166.54 million	5.53	$48.79 million	$3.17	15.36
First Bancorp, Inc (ME)	$101.39 million	3.86	$34.39 million	$3.37	10.28

First Community Bancshares has higher revenue and earnings than First Bancorp, Inc (ME). First Bancorp, Inc (ME) 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.

Profitability

This table compares First Community Bancshares and First Bancorp, Inc (ME)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Community Bancshares	28.84%	10.67%	1.61%
First Bancorp, Inc (ME)	21.43%	13.30%	1.18%

Summary

First Community Bancshares beats First Bancorp, Inc (ME) on 8 of the 15 factors compared between the two stocks.

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.

About First Bancorp, Inc (ME)

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individuals and businesses. It offers various deposit products, including demand, NOW, time, savings, money market, and certificates of deposit accounts. The company also provides commercial loans comprising commercial real estate owner occupied, such as mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties; commercial real estate non-owner occupied loans; commercial construction to finance construction in a mix of owner- and nonowner occupied commercial real estate properties; and commercial and industrial loans, including revolving and term loan for financing working capital and/or capital investment. In addition, it offers commercial multifamily loans; residential real estate term and residential real estate construction loans; loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes; home equity revolving and term loans; and personal lines of credit and amortizing loans for various purposes, such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Further, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations and municipalities; and brokerage, annuity, and various insurance products, as well as payment processing services. It operates through full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.