Comparing First Community (NASDAQ:FCCO) and BayFirst Financial (NASDAQ:BAFN)

First Community (NASDAQ:FCCO) and BayFirst Financial (NASDAQ:BAFN) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Risk & Volatility

First Community has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, BayFirst Financial has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Insider and Institutional Ownership

61.3% of First Community shares are held by institutional investors. Comparatively, 16.9% of BayFirst Financial shares are held by institutional investors. 5.9% of First Community shares are held by company insiders. Comparatively, 18.8% of BayFirst Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares First Community and BayFirst Financial’s 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%
BayFirst Financial	-8.08%	-12.02%	-0.81%

Valuation and Earnings

This table compares First Community and BayFirst Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Community	$103.43 million	2.19	$13.95 million	$2.40	12.29
BayFirst Financial	$143.28 million	0.18	$12.60 million	($3.11)	-1.97

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

Analyst Ratings

This is a summary of current ratings and price targets for First Community and BayFirst Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community	0	1	3	1	3.00
BayFirst Financial	1	0	0	0	1.00

First Community presently has a consensus price target of $29.67, indicating a potential upside of 0.56%. Given First Community’s stronger consensus rating and higher probable upside, analysts plainly believe First Community is more favorable than BayFirst Financial.

Summary

First Community beats BayFirst Financial on 12 of the 15 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 BayFirst Financial

BayFirst Financial Corp. operates as the bank holding company for BayFirst National Bank that provides community banking services for businesses and individuals. The company offers checking, savings, NOW, and money market deposit accounts, as well as certificates of deposit and individual retirement account; and safety deposit boxes. It also provides commercial real estate mortgages; construction and development, working capital, and business loans; auto, boat, and recreational vehicle loans; and residential mortgages, personal lines of credit, and home equity lines of credit. In addition, the company offers mobile and online banking, treasury management, wire transfers, cash management, merchant processing, remote deposit capture, night depositor, online bill payment, courier, retail investment, ACH originations, and other services. It operates full-service banking centers in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, Belleair Bluffs, and Bradenton, Florida. The company was formerly known as First Home Bancorp, Inc. and changed its name to BayFirst Financial Corp. in May 2021. BayFirst Financial Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.