First Community Bankshares (NASDAQ:FCBC) versus QCR (NASDAQ:QCRH) Critical Review


First Community Bankshares (NASDAQ:FCBC – Get Rating) and QCR (NASDAQ:QCRH – Get Rating) are both small financial companies, but which is the better stock? We’ll contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership, and earnings.

Institutional and Insider Ownership

Institutional investors own 38.7% of First Community Bankshares shares. In comparison, 69.5% of QCR stock is owned by institutional investors. Company insiders own 3.6% of First Community Bankshares stock. By comparison, 3.8% of QCR stock is owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds, and large money managers believe a stock is poised for long-term growth.

profitability

This table compares the net margins, return on equity and return on total assets of First Community Bankshares and QCR.

net margins return on equity return on investment
First community bank shares 32.98% 10.78% 1.46%
QCR 35.29% 16.22% 1.77%

Score & Rating

This table compares the gross earnings, earnings per share and valuation of First Community Bankshares and QCR.

gross receipts price/sales ratio net income earnings per share price-earnings ratio
First community bank shares $139.61 million 3.33 $51.17 million $2.67 10.39
QCR $300.58 million 3.11 $98.90 million $6.58 8.05

QCR has higher revenues and profits than First Community Bankshares. QCR is trading at a lower price-to-earnings multiple than First Community Bankshares, indicating that it is currently the cheaper of the two stocks.

Volatility & Risk

First Community Bankshares has a beta of 0.54, suggesting its stock price is 46% less volatile than the S&P 500. In comparison, QCR has a beta of 1.02, suggesting its stock price is 2% more volatile is than the S&P 500.

dividends

First Community Bankshares pays an annual dividend of $1.08 per share and has a dividend yield of 3.9%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. First Community Bankshares pays out 40.4% of its profits in the form of a dividend. QCR pays out 3.6% of its profits in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for years to come. First Community Bankshares has increased its dividend for 1 year in a row. First Community Bankshares is clearly the better dividend stock because of its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of the most recent ratings and recommendations for First Community Bankshares and QCR as provided by MarketBeat.com.

sell reviews keep ratings Buy reviews Strong buy recommendations rating score
First community bank shares 0 1 0 0 2.00
QCR 0 0 2 0 3.00

First Community Bankshares currently has a consensus price target of $35.00, which suggests a potential upside of 26.13%. QCR has a consensus price target of $71.50, which suggests a potential upside of 34.93%. Given QCR’s stronger consensus rating and higher potential upside, analysts clearly believe QCR is cheaper than First Community Bankshares.

summary

QCR beats First Community Bankshares on 13 of the 17 factors compared between the two stocks.

About First Community Bankshares (get rating)

First Community Bankshares, Inc. acts as the financial holding company of First Community Bank, which offers various banking products and services. Call money accounts, savings and money market accounts, certificates of deposit and individual pension schemes are offered; commercial, consumer and real estate mortgage loans and lines of credit; various credit and debit card and ATM card services; and trust services for companies and individuals. The company also provides wealth management services, including trust management, estate management, and investment advisory services; and investment management services. It serves individuals and companies in various industries such as: B. Education, government and health services; coal mining and gas extraction; Retail trade; Construction; manufacturing; Tourism; and transportation. As of December 31, 2021, the Company operated 49 stores, including 17 stores in West Virginia, 23 stores in Virginia, 7 stores in North Carolina, and 2 stores in Tennessee. First Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.

About QCR (get rating)

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, trust and wealth management services. Deposit products include noninterest-bearing demand, interest-bearing demand, time deposits and brokered deposits. The Company also provides a variety of commercial and personal lending/leasing and investment services to corporations, partnerships, individuals and government agencies. The loan portfolio includes loans to small and medium-sized enterprises; business loans, including lines of credit for working capital and operating purposes; term loans for the purchase of facilities, equipment and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as B. Home improvement, home equity, automobile and signature loans, as well as small personal lines of credit. In addition, the Company engages in the leasing of machinery and equipment to commercial and industrial companies under direct finance leases; and issuance of Trust Preferred Securities. It serves the communities of Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield. The company was founded in 1993 and is headquartered in Moline, Illinois.



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