Contrasting LINKBANCORP (NASDAQ:LNKB) and First Community Bankshares (NASDAQ:FCBC)

LINKBANCORP (NASDAQ:LNKB) and First Community Bankshares (NASDAQ:FCBC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares LINKBANCORP and First Community Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LINKBANCORP	-5.10%	5.47%	0.56%
First Community Bankshares	27.10%	11.04%	1.68%

Dividends

LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 4.7%. First Community Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.5%. LINKBANCORP pays out -115.4% of its earnings in the form of a dividend. First Community Bankshares pays out 42.8% 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 12 consecutive years. LINKBANCORP is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

LINKBANCORP has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, First Community Bankshares has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares LINKBANCORP and First Community Bankshares’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LINKBANCORP	$66.29 million	3.61	-$11.97 million	($0.26)	-24.62
First Community Bankshares	$174.62 million	3.52	$48.02 million	$2.71	12.37

First Community Bankshares has higher revenue and earnings than LINKBANCORP. LINKBANCORP 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.

Institutional and Insider Ownership

37.5% of LINKBANCORP shares are held by institutional investors. Comparatively, 35.0% of First Community Bankshares shares are held by institutional investors. 35.8% of LINKBANCORP shares are held by company insiders. Comparatively, 3.7% of First Community Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LINKBANCORP	0	1	0	0	2.00
First Community Bankshares	1	0	0	0	1.00

LINKBANCORP presently has a consensus price target of $7.50, indicating a potential upside of 17.19%. First Community Bankshares has a consensus price target of $33.00, indicating a potential downside of 1.58%. Given LINKBANCORP’s stronger consensus rating and higher possible upside, equities analysts clearly believe LINKBANCORP is more favorable than First Community Bankshares.

About LINKBANCORP

LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.

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.