First Community Bancshares (NASDAQ:FCBC) vs. Community Trust Bancorp (NASDAQ:CTBI) Head to Head Analysis

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

Volatility and Risk

Community Trust Bancorp has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

60.2% of Community Trust Bancorp shares are owned by institutional investors. Comparatively, 35.0% of First Community Bancshares shares are owned by institutional investors. 2.6% of Community Trust Bancorp shares are owned by insiders. Comparatively, 3.7% of First Community Bancshares 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.

Dividends

Community Trust Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 2.8%. First Community Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. Community Trust Bancorp pays out 35.5% of its earnings in the form of a dividend. First Community Bancshares pays out 41.6% 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. Community Trust Bancorp has increased its dividend for 44 consecutive years and First Community Bancshares has increased its dividend for 13 consecutive years. Community Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community Trust Bancorp	25.55%	12.52%	1.60%
First Community Bancshares	28.84%	10.67%	1.61%

Analyst Ratings

This is a summary of recent ratings for Community Trust Bancorp and First Community Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Trust Bancorp	0	2	1	1	2.75
First Community Bancshares	0	2	1	0	2.33

Community Trust Bancorp presently has a consensus price target of $81.50, suggesting a potential upside of 6.31%. Given Community Trust Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Community Trust Bancorp is more favorable than First Community Bancshares.

Earnings & Valuation

This table compares Community Trust Bancorp and First Community Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Trust Bancorp	$409.34 million	3.40	$98.06 million	$5.97	12.84
First Community Bancshares	$185.42 million	4.99	$48.79 million	$3.17	15.43

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

Summary

Community Trust Bancorp beats First Community Bancshares on 12 of the 17 factors compared between the two stocks.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.

About First Community Bancshares

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.