Head to Head Comparison: Bank of N.T. Butterfield & Son (NYSE:NTB) vs. First Community Bancshares (NASDAQ:FCBC)

First Community Bancshares (NASDAQ:FCBC – Get Free Report) and Bank of N.T. Butterfield & Son (NYSE:NTB – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares First Community Bancshares and Bank of N.T. Butterfield & Son”s revenue, earnings per share (EPS) and valuation.

Bank of N.T. Butterfield & Son has higher revenue and earnings than First Community Bancshares. Bank of N.T. Butterfield & Son 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.

Dividends

First Community Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.8%. Bank of N.T. Butterfield & Son pays an annual dividend of $2.00 per share and has a dividend yield of 3.4%. First Community Bancshares pays out 41.6% of its earnings in the form of a dividend. Bank of N.T. Butterfield & Son pays out 35.1% 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 Bancshares has raised its dividend for 13 consecutive years. Bank of N.T. Butterfield & Son is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

35.0% of First Community Bancshares shares are held by institutional investors. Comparatively, 62.7% of Bank of N.T. Butterfield & Son shares are held by institutional investors. 3.7% of First Community Bancshares shares are held by insiders. Comparatively, 1.2% of Bank of N.T. Butterfield & Son shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares First Community Bancshares and Bank of N.T. Butterfield & Son’s net margins, return on equity and return on assets.

Analyst Recommendations

This is a summary of current ratings and price targets for First Community Bancshares and Bank of N.T. Butterfield & Son, as provided by MarketBeat.

Bank of N.T. Butterfield & Son has a consensus target price of $63.50, indicating a potential upside of 7.06%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher probable upside, analysts plainly believe Bank of N.T. Butterfield & Son is more favorable than First Community Bancshares.

Risk and Volatility

First Community Bancshares has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Bank of N.T. Butterfield & Son has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Summary

Bank of N.T. Butterfield & Son beats First Community Bancshares on 13 of the 18 factors compared between the two stocks.

About First Community Bancshares

(Get Free Report)

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.

About Bank of N.T. Butterfield & Son

(Get Free Report)

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management. The Channel Islands and the UK segment refers to the retail and corporate banking and wealth management. The Other segment includes operations in the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland. The company was founded in 1858 and is headquartered in Hamilton, Bermuda.