Financial Analysis: Republic Bancorp, Inc. KY (NASDAQ:RBCAA) versus First Community Bankshares (NASDAQ:FCBC)

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

Dividends

Republic Bancorp, Inc. KY pays an annual dividend of $1.06 per share and has a dividend yield of 2.5%. First Community Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. First Community Bankshares pays out 45.5% of its earnings in the form of a dividend. Republic Bancorp, Inc. KY has increased its dividend for 18 consecutive years and First Community Bankshares has increased its dividend for 8 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Republic Bancorp, Inc. KY 25.98% 11.46% 1.46%
First Community Bankshares 30.16% 10.37% 1.56%

Risk and Volatility

Republic Bancorp, Inc. KY has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, First Community Bankshares has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Institutional and Insider Ownership

26.8% of Republic Bancorp, Inc. KY shares are held by institutional investors. Comparatively, 42.3% of First Community Bankshares shares are held by institutional investors. 52.0% of Republic Bancorp, Inc. KY shares are held by company insiders. Comparatively, 3.4% of First Community Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Republic Bancorp, Inc. KY and First Community Bankshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Republic Bancorp, Inc. KY $355.89 million 2.49 $91.70 million N/A N/A
First Community Bankshares $128.65 million 3.70 $38.80 million $2.20 13.90

Republic Bancorp, Inc. KY has higher revenue and earnings than First Community Bankshares.

Analyst Ratings

This is a summary of recent recommendations and price targets for Republic Bancorp, Inc. KY and First Community Bankshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Republic Bancorp, Inc. KY 0 0 0 0 N/A
First Community Bankshares 0 0 0 0 N/A

Summary

Republic Bancorp, Inc. KY beats First Community Bankshares on 7 of the 13 factors compared between the two stocks.

About Republic Bancorp, Inc. KY

Republic Bancorp, Inc., a financial holding company, provides banking products and services in the United States. It operates through five segments: Traditional Banking, Warehouse Lending, Mortgage Banking, Tax Refund Solutions, and Republic Credit Solutions. The company accepts demand, savings, time, and brokered and other certificates of deposit; and money market and individual retirement accounts. Its loan products include single family, first lien residential real estate, and adjustable rate mortgage loans; commercial and industrial, commercial real estate, construction and development, and multi-family loans, as well as equipment financing; construction and land development loans; Internet and correspondent lending; home improvement and home equity, and secured and unsecured personal loans; and dealer floor plan, consumer indirect automobile, and aircraft loans. The company also offers credit cards; title insurance and other financial products and services; and memory banking, 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 provides short-term, revolving credit facilities to mortgage bankers; 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; and general purpose reloadable prepaid cards through third party service providers. Further, the company offers consumer credit products; and property and casualty insurance products. As of December 31, 2018, it operated 45 full-service banking centers, including 32 banking centers in Kentucky; 7 banking centers in Florida; 3 banking centers in Indiana; 2 banking centers and 1 loan production office in Tennessee; and 1 banking center in Ohio. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.

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 arrangements; commercial, consumer, and real estate mortgage loans, as well as lines of credit; various credit and debit cards, and automated teller machine card services; and corporate and personal trust services. The company also provides wealth management services, including 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. As of December 31, 2018, the company operated 44 branches, including 19 branches in Virginia, 18 branches in West Virginia, 5 branches in North Carolina, and 2 branches in Tennessee. First Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.

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