Reviewing First Us Bancsh (NASDAQ:FUSB) and First Community Bancshares (NASDAQ:FCBC)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for First Community Bancshares and First Us Bancsh, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community Bancshares	0	0	1	0	3.00
First Us Bancsh	0	1	0	0	2.00

Volatility & Risk

First Community Bancshares has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, First Us Bancsh has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Community Bancshares and First Us Bancsh”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	$161.08 million	5.14	$48.79 million	$2.65	16.55
First Us Bancsh	$62.99 million	1.43	$5.99 million	$1.04	15.59

First Community Bancshares has higher revenue and earnings than First Us Bancsh. First Us Bancsh 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.

Dividends

First Community Bancshares pays an annual dividend of $1.24 per share and has a dividend yield of 2.8%. First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. First Community Bancshares pays out 46.8% of its earnings in the form of a dividend. First Us Bancsh pays out 26.9% 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 and First Us Bancsh has raised its dividend for 3 consecutive years. First Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares First Community Bancshares and First Us Bancsh’s 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%
First Us Bancsh	9.65%	5.92%	0.53%

Institutional and Insider Ownership

35.0% of First Community Bancshares shares are held by institutional investors. Comparatively, 18.7% of First Us Bancsh shares are held by institutional investors. 3.7% of First Community Bancshares shares are held by insiders. Comparatively, 12.1% of First Us Bancsh shares are held by 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.

Summary

First Community Bancshares beats First Us Bancsh on 14 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 First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.