Analyzing TrustCo Bank Corp NY (NASDAQ:TRST) & First Community Bankshares (NASDAQ:FCBC)

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

Analyst Recommendations

This is a summary of current recommendations for TrustCo Bank Corp NY and First Community Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	0	0	0.00
First Community Bankshares	0	1	0	0	2.00

First Community Bankshares has a consensus price target of $38.00, suggesting a potential downside of 3.92%. Given First Community Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe First Community Bankshares is more favorable than TrustCo Bank Corp NY.

Profitability

This table compares TrustCo Bank Corp NY and First Community Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	18.56%	7.37%	0.79%
First Community Bankshares	27.81%	10.35%	1.64%

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.44 per share and has a dividend yield of 4.5%. First Community Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.1%. TrustCo Bank Corp NY pays out 53.7% 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.

Institutional and Insider Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 35.0% of First Community Bankshares shares are owned by institutional investors. 2.9% of TrustCo Bank Corp NY shares are owned by insiders. Comparatively, 3.7% of First Community Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

TrustCo Bank Corp NY has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, First Community Bankshares has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares TrustCo Bank Corp NY and First Community Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrustCo Bank Corp NY	$175.70 million	3.48	$48.83 million	$2.68	12.00
First Community Bankshares	$155.82 million	4.64	$51.60 million	$2.77	14.28

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

Summary

First Community Bankshares beats TrustCo Bank Corp NY on 12 of the 16 factors compared between the two stocks.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals and businesses. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. It operates through banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York; Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida; Bennington County in Vermont; Berkshire County in Massachusetts; and Bergen County in New Jersey, as well as automatic teller machines. The company was founded in 1902 and is headquartered in Glenville, New York.

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.