First Community Bancshares (NASDAQ:FCBC) versus Community Capital Bancshares (OTCMKTS:ALBY) Financial Analysis

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

Profitability

This table compares First Community Bancshares and Community Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Community Bancshares	25.89%	10.44%	1.60%
Community Capital Bancshares	N/A	N/A	N/A

Earnings & Valuation

This table compares First Community Bancshares and Community Capital Bancshares”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	$185.42 million	4.33	$48.79 million	$2.65	16.04
Community Capital Bancshares	$15.03 million	2.82	$4.90 million	$3.85	8.48

First Community Bancshares has higher revenue and earnings than Community Capital Bancshares. Community Capital Bancshares 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for First Community Bancshares and Community Capital Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community Bancshares	0	0	1	0	3.00
Community Capital Bancshares	0	0	0	0	0.00

Institutional and Insider Ownership

35.0% of First Community Bancshares shares are held by institutional investors. 3.7% of First Community Bancshares shares are held by insiders. Comparatively, 42.4% of Community Capital Bancshares 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.

Risk & Volatility

First Community Bancshares has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Community Capital Bancshares has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Dividends

First Community Bancshares pays an annual dividend of $1.24 per share and has a dividend yield of 2.9%. Community Capital Bancshares pays an annual dividend of $2.00 per share and has a dividend yield of 6.1%. First Community Bancshares pays out 46.8% of its earnings in the form of a dividend. Community Capital Bancshares pays out 51.9% 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. First Community Bancshares has raised its dividend for 13 consecutive years.

Summary

First Community Bancshares beats Community Capital Bancshares on 13 of the 16 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 Community Capital Bancshares

Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.