Truxton (OTCMKTS:TRUX) & Fvcbankcorp (NASDAQ:FVCB) Head-To-Head Survey

Truxton (OTCMKTS:TRUX) and Fvcbankcorp (NASDAQ:FVCB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk & Volatility

Truxton has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Fvcbankcorp has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Insider and Institutional Ownership

0.3% of Truxton shares are held by institutional investors. Comparatively, 43.6% of Fvcbankcorp shares are held by institutional investors. 10.9% of Fvcbankcorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Truxton and Fvcbankcorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truxton	0	0	0	0	0.00
Fvcbankcorp	0	1	2	0	2.67

Fvcbankcorp has a consensus target price of $18.00, suggesting a potential upside of 17.96%. Given Fvcbankcorp’s stronger consensus rating and higher probable upside, analysts clearly believe Fvcbankcorp is more favorable than Truxton.

Valuation and Earnings

This table compares Truxton and Fvcbankcorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truxton	$92.29 million	2.68	$21.48 million	$7.44	11.53
Fvcbankcorp	$122.03 million	2.24	$22.06 million	$1.21	12.61

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

Dividends

Truxton pays an annual dividend of $3.52 per share and has a dividend yield of 4.1%. Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Truxton pays out 47.3% of its earnings in the form of a dividend. Fvcbankcorp pays out 19.8% 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.

Profitability

This table compares Truxton and Fvcbankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Truxton	23.28%	N/A	N/A
Fvcbankcorp	18.08%	8.92%	0.97%

Summary

Fvcbankcorp beats Truxton on 11 of the 16 factors compared between the two stocks.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.

About Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.