F.N.B. Corporation (NYSE: FNB) and First Community Bancshares (NASDAQ:FCBC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Risk and Volatility

F.N.B. Corporation has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

76.5% of F.N.B. Corporation shares are owned by institutional investors. Comparatively, 40.3% of First Community Bancshares shares are owned by institutional investors. 1.2% of F.N.B. Corporation shares are owned by company insiders. Comparatively, 3.3% of First Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares F.N.B. Corporation and First Community Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
F.N.B. Corporation $878.51 million 5.09 $248.88 million $0.77 17.97
First Community Bancshares $107.58 million 4.88 $26.72 million $1.57 19.64

F.N.B. Corporation has higher revenue and earnings than First Community Bancshares. F.N.B. Corporation 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 F.N.B. Corporation and First Community Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
F.N.B. Corporation 19.95% 6.81% 0.92%
First Community Bancshares 22.32% 7.72% 1.11%

Dividends

F.N.B. Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 3.5%. First Community Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. F.N.B. Corporation pays out 62.3% of its earnings in the form of a dividend. First Community Bancshares pays out 45.9% 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for F.N.B. Corporation and First Community Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
F.N.B. Corporation 0 2 8 1 2.91
First Community Bancshares 0 2 0 0 2.00

F.N.B. Corporation currently has a consensus price target of $17.39, suggesting a potential upside of 25.64%. First Community Bancshares has a consensus price target of $23.50, suggesting a potential downside of 23.78%. Given F.N.B. Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe F.N.B. Corporation is more favorable than First Community Bancshares.

Summary

F.N.B. Corporation beats First Community Bancshares on 10 of the 17 factors compared between the two stocks.

About F.N.B. Corporation

F.N.B. Corporation is a financial holding company. The Company operates through four segments: Community Banking, Wealth Management, Insurance and Consumer Finance. Its Community Banking segment consists of First National Bank of Pennsylvania (FNBPA), which offers services, including commercial and individual demand, savings and time deposit accounts and commercial, mortgage and individual installment loans. It operates its Community Banking business through a network of over 290 branches in Pennsylvania, Ohio, Maryland and West Virginia. Its Wealth Management segment delivers wealth management services to individuals, corporations and retirement funds, as well as existing customers of Community Banking. The Company’s Insurance segment operates principally through First National Insurance Agency, LLC (FNIA), which is a subsidiary of the Corporation. Its Consumer Finance segment operates through its subsidiary, Regency Finance Company. It also operates other non-banking subsidiaries.

About First Community Bancshares

First Community Bancshares, Inc. is a financial holding company. The Company provides commercial banking products and services through its subsidiary First Community Bank (the Bank). The Bank operates as First Community Bank in Virginia, West Virginia, and North Carolina and People’s Community Bank, a Division of First Community Bank, in Tennessee. It provides insurance services through its subsidiary First Community Insurance Services, and offers wealth management and investment advice through its Trust Division and subsidiary First Community Wealth Management. Its products include demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans and lines of credit; various credit card, debit card, and automated teller machine card services; corporate and personal trust services; investment management services, and life, health, and property and casualty insurance products.

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