Critical Review: First Community Bancshares (NASDAQ:FCBC) & Thomasville Bancshares (OTCMKTS:THVB)

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

Earnings & Valuation

This table compares Thomasville Bancshares and First Community Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomasville Bancshares	$137.59 million	4.36	$39.27 million	N/A	N/A
First Community Bancshares	$185.53 million	3.47	$51.60 million	$2.69	13.08

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

Institutional & Insider Ownership

35.0% of First Community Bancshares shares are owned by institutional investors. 3.7% of First Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Thomasville Bancshares	N/A	N/A	N/A
First Community Bancshares	26.76%	9.82%	1.56%

Dividends

Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 3.1%. First Community Bancshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.5%. First Community Bancshares pays out 46.1% of its earnings in the form of a dividend. First Community Bancshares has increased its dividend for 13 consecutive years. First Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Thomasville Bancshares has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Thomasville Bancshares and First Community Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomasville Bancshares	0	0	0	0	0.00
First Community Bancshares	0	1	0	0	2.00

Summary

First Community Bancshares beats Thomasville Bancshares on 11 of the 13 factors compared between the two stocks.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.

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.