Analyzing Texas Community Bancshares (NASDAQ:TCBS) and Fvcbankcorp (NASDAQ:FVCB)

Fvcbankcorp (NASDAQ:FVCB) and Texas Community Bancshares (NASDAQ:TCBS) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Earnings and Valuation

This table compares Fvcbankcorp and Texas Community Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fvcbankcorp	$122.03 million	2.48	$22.06 million	$1.28	13.12
Texas Community Bancshares	$25.57 million	1.95	$2.84 million	$1.09	15.80

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fvcbankcorp and Texas Community Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fvcbankcorp	0	1	2	0	2.67
Texas Community Bancshares	0	1	0	0	2.00

Fvcbankcorp currently has a consensus price target of $19.00, indicating a potential upside of 13.16%. Given Fvcbankcorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Fvcbankcorp is more favorable than Texas Community Bancshares.

Institutional & Insider Ownership

43.6% of Fvcbankcorp shares are held by institutional investors. Comparatively, 15.8% of Texas Community Bancshares shares are held by institutional investors. 11.2% of Fvcbankcorp shares are held by company insiders. Comparatively, 15.3% of Texas Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Fvcbankcorp and Texas Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fvcbankcorp	18.85%	9.22%	1.01%
Texas Community Bancshares	11.79%	5.66%	0.70%

Dividends

Fvcbankcorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Texas Community Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Fvcbankcorp pays out 21.9% of its earnings in the form of a dividend. Texas Community Bancshares pays out 22.0% 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. Texas Community Bancshares has increased its dividend for 1 consecutive years. Fvcbankcorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Fvcbankcorp has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Texas Community Bancshares has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.

Summary

Fvcbankcorp beats Texas Community Bancshares on 14 of the 17 factors compared between the two stocks.

About Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

About Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.