Head-To-Head Contrast: Third Coast Bancshares (NASDAQ:TCBX) versus First Community (NASDAQ:FCCO)

First Community (NASDAQ:FCCO) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Community	16.69%	12.46%	0.94%
Third Coast Bancshares	16.30%	12.05%	1.17%

Dividends

First Community pays an annual dividend of $0.64 per share and has a dividend yield of 2.2%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 43.6%. First Community pays out 26.7% of its earnings in the form of a dividend. Third Coast Bancshares pays out 473.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Community has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First Community and Third Coast Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community	0	1	3	1	3.00
Third Coast Bancshares	0	2	2	1	2.80

First Community presently has a consensus target price of $29.67, indicating a potential upside of 0.98%. Third Coast Bancshares has a consensus target price of $42.67, indicating a potential upside of 10.31%. Given Third Coast Bancshares’ higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than First Community.

Insider and Institutional Ownership

61.3% of First Community shares are held by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are held by institutional investors. 5.9% of First Community shares are held by company insiders. Comparatively, 10.3% of Third Coast Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

First Community has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Community and Third Coast Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Community	$103.43 million	2.18	$13.95 million	$2.40	12.24
Third Coast Bancshares	$197.80 million	2.72	$47.67 million	$3.56	10.87

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

Summary

First Community beats Third Coast Bancshares on 9 of the 17 factors compared between the two stocks.

About First Community

First Community Corporation operates as the bank holding company for First Community Bank that provides various commercial and retail banking products and services to small-to-medium sized businesses, professionals, and individuals. The company operates through Commercial and Retail Banking, Mortgage Banking, and Investment Advisory and Non-Deposit segments. Its deposit products include checking, NOW, savings, and individual retirement accounts; and demand deposits, as well as other time deposits, such as daily money market accounts and longer-term certificates of deposit. The company's loan portfolio comprises commercial loans that include 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 online banking, internet banking, cash management, safe deposit boxes, 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; investment advisory services; and insurance services. The company was incorporated in 1994 and is headquartered in Lexington, South Carolina.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.