Contrasting First Community Bancshares (FCBC) and Eagle Bancorp (EGBN)

First Community Bancshares (NASDAQ: FCBC) and Eagle Bancorp (NASDAQ:EGBN) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Dividends

First Community Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Eagle Bancorp does not pay a dividend. First Community Bancshares pays out 45.9% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
First Community Bancshares 22.32% 7.67% 1.11%
Eagle Bancorp 32.40% 12.37% 1.54%

Earnings and Valuation

This table compares First Community Bancshares and Eagle Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
First Community Bancshares $121.79 million 3.92 $25.12 million $1.57 17.91
Eagle Bancorp $313.09 million 7.27 $97.70 million $3.22 20.68

Eagle Bancorp has higher revenue and earnings than First Community Bancshares. First Community Bancshares is trading at a lower price-to-earnings ratio than Eagle Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for First Community Bancshares and Eagle Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Community Bancshares 0 2 0 0 2.00
Eagle Bancorp 0 2 3 0 2.60

First Community Bancshares presently has a consensus target price of $23.50, indicating a potential downside of 16.43%. Eagle Bancorp has a consensus target price of $66.00, indicating a potential downside of 0.90%. Given Eagle Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Eagle Bancorp is more favorable than First Community Bancshares.

Risk & Volatility

First Community Bancshares has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Institutional and Insider Ownership

40.3% of First Community Bancshares shares are owned by institutional investors. Comparatively, 69.0% of Eagle Bancorp shares are owned by institutional investors. 3.3% of First Community Bancshares shares are owned by company insiders. Comparatively, 8.4% of Eagle Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Eagle Bancorp beats First Community Bancshares on 15 of the 16 factors compared between the two stocks.

About First Community Bancshares

First Community Bancshares, Inc. is a financial holding company. The Company provides commercial banking products and services through its subsidiary First Community Bank (the Bank). The Bank operates as First Community Bank in Virginia, West Virginia, and North Carolina and People’s Community Bank, a Division of First Community Bank, in Tennessee. It provides insurance services through its subsidiary First Community Insurance Services, and offers wealth management and investment advice through its Trust Division and subsidiary First Community Wealth Management. Its products include demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans and lines of credit; various credit card, debit card, and automated teller machine card services; corporate and personal trust services; investment management services, and life, health, and property and casualty insurance products.

About Eagle Bancorp

Eagle Bancorp, Inc. is a bank holding company for EagleBank (the Bank). The Bank is the Company’s principal operating subsidiary. The Bank is a chartered commercial bank. As of December 31, 2016, the Bank operated 21 banking offices: seven in Montgomery County, Maryland; five located in the District of Columbia, and nine in Northern Virginia. The Bank offers a range of commercial banking services to its business and professional clients, as well as consumer banking services to individuals living or working in the service area. The Bank also provides commercial banking services to proprietorships, businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the Bank’s primary service area. The Bank offers a range of retail banking services to accommodate the individual needs of both corporate customers, as well as the community the Bank serves. It also offers online banking, mobile banking and remote deposit services.

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