West Bancorporation (NASDAQ:WTBA) and First Community (NASDAQ:FCCO) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
West Bancorporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. First Community pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. First Community pays out 36.7% of its earnings in the form of a dividend. West Bancorporation has raised its dividend for 5 consecutive years and First Community has raised its dividend for 5 consecutive years.
This table compares West Bancorporation and First Community’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares West Bancorporation and First Community’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|West Bancorporation||$81.68 million||4.63||$23.07 million||N/A||N/A|
|First Community||$41.79 million||4.43||$5.81 million||$1.09||22.34|
West Bancorporation has higher revenue and earnings than First Community.
This is a breakdown of recent ratings and target prices for West Bancorporation and First Community, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Volatility and Risk
West Bancorporation has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, First Community has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.
Institutional and Insider Ownership
33.2% of West Bancorporation shares are owned by institutional investors. Comparatively, 52.2% of First Community shares are owned by institutional investors. 3.3% of West Bancorporation shares are owned by company insiders. Comparatively, 7.4% of First Community 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.
West Bancorporation beats First Community on 9 of the 12 factors compared between the two stocks.
West Bancorporation Company Profile
West Bancorporation, Inc. operates as the holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers various deposit products, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers trust services, including the administration of estates, conservatorships, personal trusts, and agency accounts. The company has eight offices in the Des Moines metropolitan area; one office in Iowa City; one office in Coralville; and one office in Rochester, Minnesota. West Bancorporation, Inc. was founded in 1893 and is based in West Des Moines, Iowa.
First Community Company Profile
First Community Corporation operates as the bank holding company for First Community Bank which offers various commercial and retail banking products and services to small-to-medium sized businesses, professional concerns, and individuals. The company operates through four segments: Commercial and Retail Banking, Mortgage Banking, Investment Advisory and Non-Deposit, and Corporate. Its deposit products include demand deposit accounts, checking accounts, NOW accounts, and savings accounts, as well as other time deposits, such as daily money market accounts and longer-term certificates of deposits. The company's loan portfolio comprises commercial loans that consist of secured and unsecured loans for working capital, business expansion, and the purchase of equipment and machinery; consumer loans, including secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; real estate construction and acquisition loans; and fixed and variable rate mortgage loans. It also provides other banking services, which include Internet banking, cash management services, safe deposit boxes, traveler's checks, direct deposit of payroll and social security checks, and automatic drafts for various accounts. In addition, the company offers non-deposit investment products and other investment brokerage services; VISA and MasterCard credit card services; financial and investment advisory services; and insurance services. It operates 18 full-service offices located in the Lexington County, Richland County, Newberry County, Kershaw County, Greenville County, Anderson County, Pickens County, and Aiken County, South Carolina; and Richmond County, Georgia. First Community Corporation was incorporated in 1994 and is headquartered in Lexington, South Carolina.
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