Community West Bancshares (NASDAQ:CWBC) vs. First Community Bankshares (NASDAQ:FCBC) Head to Head Survey

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

Dividends

Community West Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. First Community Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.3%. Community West Bancshares pays out 73.8% of its earnings in the form of a dividend. First Community Bankshares pays out 44.8% 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 Bankshares has raised its dividend for 13 consecutive years. First Community Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Community West Bancshares and First Community Bankshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community West Bancshares	$46.27 million	7.36	$7.67 million	$0.65	27.49
First Community Bankshares	$155.82 million	4.46	$51.60 million	$2.77	13.72

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

Volatility and Risk

Community West Bancshares has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, First Community Bankshares has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Community West Bancshares and First Community Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community West Bancshares	0	1	2	0	2.67
First Community Bankshares	0	1	0	0	2.00

Community West Bancshares currently has a consensus target price of $20.67, suggesting a potential upside of 15.65%. First Community Bankshares has a consensus target price of $38.00, suggesting a potential upside of 0.00%. Given Community West Bancshares’ stronger consensus rating and higher possible upside, research analysts clearly believe Community West Bancshares is more favorable than First Community Bankshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community West Bancshares	4.59%	7.90%	0.78%
First Community Bankshares	27.81%	10.35%	1.64%

Institutional & Insider Ownership

33.8% of Community West Bancshares shares are held by institutional investors. Comparatively, 35.0% of First Community Bankshares shares are held by institutional investors. 10.6% of Community West Bancshares shares are held by company insiders. Comparatively, 3.7% of First Community Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

First Community Bankshares beats Community West Bancshares on 10 of the 17 factors compared between the two stocks.

About Community West Bancshares

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposits; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.

About First Community Bankshares

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.