Contrasting First Community (NASDAQ:FCCO) & Colony Bankcorp (NASDAQ:CBAN)

First Community (NASDAQ:FCCO) and Colony Bankcorp (NASDAQ:CBAN) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

First Community has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Dividends

First Community pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Colony Bankcorp pays an annual dividend of $0.45 per share and has a dividend yield of 2.9%. First Community pays out 42.0% of its earnings in the form of a dividend. Colony Bankcorp pays out 36.0% 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. Colony Bankcorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares First Community and Colony Bankcorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Community	$62.20 million	2.81	$11.84 million	$1.43	16.01
Colony Bankcorp	$113.57 million	2.38	$21.75 million	$1.25	12.32

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Community	11.60%	8.33%	0.59%
Colony Bankcorp	13.03%	9.09%	0.76%

Insider & Institutional Ownership

61.3% of First Community shares are owned by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are owned by institutional investors. 3.0% of First Community shares are owned by insiders. Comparatively, 6.6% of Colony Bankcorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First Community and Colony Bankcorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community	0	0	1	0	3.00
Colony Bankcorp	0	0	0	0	N/A

First Community currently has a consensus target price of $21.00, suggesting a potential downside of 8.30%. Given First Community’s higher possible upside, analysts plainly believe First Community is more favorable than Colony Bankcorp.

Summary

Colony Bankcorp beats First Community on 9 of the 15 factors compared between the two stocks.

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.

About Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.