Republic Bancorp (NASDAQ:RBCAA) versus First Community (NASDAQ:FCCO) Head to Head Comparison

Republic Bancorp (NASDAQ:RBCAA) and First Community (NASDAQ:FCCO) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Risk and Volatility

Republic Bancorp has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, First Community has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares Republic Bancorp and First Community’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Republic Bancorp	25.19%	12.27%	1.87%
First Community	16.85%	12.71%	0.98%

Insider & Institutional Ownership

24.4% of Republic Bancorp shares are owned by institutional investors. Comparatively, 61.3% of First Community shares are owned by institutional investors. 55.9% of Republic Bancorp shares are owned by company insiders. Comparatively, 8.8% of First Community shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Republic Bancorp and First Community”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Republic Bancorp	$521.34 million	2.73	$131.32 million	$6.72	10.78
First Community	$114.00 million	2.53	$19.20 million	$2.47	12.43

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

Dividends

Republic Bancorp pays an annual dividend of $1.98 per share and has a dividend yield of 2.7%. First Community pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Republic Bancorp pays out 29.5% of its earnings in the form of a dividend. First Community pays out 25.9% 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. Republic Bancorp has increased its dividend for 27 consecutive years and First Community has increased its dividend for 4 consecutive years. Republic Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Republic Bancorp and First Community, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Bancorp	0	2	1	0	2.33
First Community	0	1	2	0	2.67

Republic Bancorp presently has a consensus price target of $69.00, suggesting a potential downside of 4.78%. First Community has a consensus price target of $34.00, suggesting a potential upside of 10.79%. Given First Community’s stronger consensus rating and higher probable upside, analysts plainly believe First Community is more favorable than Republic Bancorp.

Summary

Republic Bancorp beats First Community on 10 of the 17 factors compared between the two stocks.

About Republic Bancorp

Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company that provides various banking products and services in the United States. It operates in six segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions. The company offers demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit; and retail and commercial mortgage, construction and land development, consumer, aircraft, and marine loans. It also provides credit cards; title insurance and other financial products and services; and private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it offers short-term and revolving credit facilities to mortgage bankers through mortgage warehouse lines of credit; mortgage banking; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; payments-related products and services to consumers through third party service providers; and consumer credit products. The company offers its services through full-services banking centers in Kentucky, Indiana, Florida, Ohio, and Tennessee. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.

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.