Head-To-Head Analysis: Southern States Bancshares (NASDAQ:SSBK) vs. First Community (NASDAQ:FCCO)

Southern States Bancshares (NASDAQ:SSBK) and First Community (NASDAQ:FCCO) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

This table compares Southern States Bancshares and First Community’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern States Bancshares	19.68%	15.04%	1.38%
First Community	13.49%	10.14%	0.73%

Institutional and Insider Ownership

58.7% of Southern States Bancshares shares are owned by institutional investors. Comparatively, 61.3% of First Community shares are owned by institutional investors. 14.8% of Southern States Bancshares shares are owned by company insiders. Comparatively, 3.0% of First Community shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Southern States Bancshares and First Community”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern States Bancshares	$99.10 million	3.24	$34.87 million	$3.67	8.86
First Community	$66.18 million	2.88	$13.95 million	$1.81	13.78

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Southern States Bancshares and First Community, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern States Bancshares	0	0	2	0	3.00
First Community	0	0	2	1	3.33

Southern States Bancshares presently has a consensus target price of $35.50, indicating a potential upside of 9.23%. First Community has a consensus target price of $29.67, indicating a potential upside of 18.90%. Given First Community’s stronger consensus rating and higher possible upside, analysts plainly believe First Community is more favorable than Southern States Bancshares.

Dividends

Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. First Community pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Southern States Bancshares pays out 9.8% of its earnings in the form of a dividend. First Community pays out 33.1% 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.

Volatility & Risk

Southern States Bancshares has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, First Community has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Summary

Southern States Bancshares beats First Community on 9 of the 16 factors compared between the two stocks.

About Southern States Bancshares

Southern States Bancshares, Inc. operates as the bank holding company for Southern States Bank that provides community banking services to businesses and individuals. The company provides various deposit products, such as savings, money market, and noninterest-bearing demand accounts; certificates of deposit; and time deposits. It offers real estate loan products, including loans for real estate construction and development, residential mortgages, and commercial real estate mortgage loans; commercial and industrial loans; and direct consumer installment loans, overdrafts, and other revolving credit loans. In addition, it offers online and mobile banking, and ATM services. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.

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.