Analyzing HarborOne Bancorp (NASDAQ:HONE) & First Community Bankshares (NASDAQ:FCBC)

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

Dividends

HarborOne Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. First Community Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 2.8%. HarborOne Bancorp pays out 48.5% of its earnings in the form of a dividend. First Community Bankshares pays out 43.7% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

HarborOne Bancorp has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, First Community Bankshares has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Earnings and Valuation

This table compares HarborOne Bancorp and First Community Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HarborOne Bancorp	$318.33 million	1.68	$27.41 million	$0.66	18.44
First Community Bankshares	$185.53 million	4.38	$51.60 million	$2.84	15.64

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HarborOne Bancorp	8.61%	4.63%	0.46%
First Community Bankshares	27.81%	10.35%	1.64%

Institutional and Insider Ownership

65.0% of HarborOne Bancorp shares are held by institutional investors. Comparatively, 35.0% of First Community Bankshares shares are held by institutional investors. 4.9% of HarborOne Bancorp 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for HarborOne Bancorp and First Community Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HarborOne Bancorp	0	1	0	0	2.00
First Community Bankshares	0	1	0	0	2.00

HarborOne Bancorp currently has a consensus price target of $13.00, indicating a potential upside of 6.82%. First Community Bankshares has a consensus price target of $38.00, indicating a potential downside of 14.47%. Given HarborOne Bancorp’s higher possible upside, analysts plainly believe HarborOne Bancorp is more favorable than First Community Bankshares.

Summary

First Community Bankshares beats HarborOne Bancorp on 8 of the 14 factors compared between the two stocks.

About HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and primary lending products comprise commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through a network of full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island, as well as administrative offices in Brockton, Massachusetts, as well as ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.

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.