Coastal Financial (NASDAQ:CCB) & First Community (NASDAQ:FCCO) Financial Review

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

Analyst Ratings

This is a summary of current ratings for First Community and Coastal Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community	0	0	1	0	3.00
Coastal Financial	0	0	1	1	3.50

First Community presently has a consensus price target of $21.00, indicating a potential upside of 23.53%. Coastal Financial has a consensus price target of $54.00, indicating a potential upside of 17.52%. Given First Community’s higher possible upside, analysts clearly believe First Community is more favorable than Coastal Financial.

Volatility and Risk

First Community has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares First Community and Coastal Financial’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Community	$83.12 million	1.55	$11.84 million	$1.43	11.80
Coastal Financial	$537.55 million	1.16	$44.58 million	$2.86	16.19

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

Institutional and Insider Ownership

61.3% of First Community shares are owned by institutional investors. Comparatively, 59.2% of Coastal Financial shares are owned by institutional investors. 3.0% of First Community shares are owned by company insiders. Comparatively, 16.8% of Coastal Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Community	12.32%	8.57%	0.61%
Coastal Financial	6.55%	14.31%	1.11%

Summary

Coastal Financial beats First Community on 10 of the 14 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 Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.