Critical Survey: First Bancshares (NASDAQ:FBMS) vs. Shore Community Bank (OTCMKTS:SHRC)

First Bancshares (NASDAQ:FBMS) and Shore Community Bank (OTCMKTS:SHRC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancshares	$276.99 million	3.81	$77.19 million	$2.44	13.83
Shore Community Bank	N/A	N/A	N/A	N/A	N/A

First Bancshares has higher revenue and earnings than Shore Community Bank.

Analyst Recommendations

This is a summary of current recommendations for First Bancshares and Shore Community Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancshares	0	2	1	0	2.33
Shore Community Bank	0	0	0	0	0.00

First Bancshares currently has a consensus price target of $38.75, indicating a potential upside of 14.81%. Given First Bancshares’ stronger consensus rating and higher possible upside, equities analysts plainly believe First Bancshares is more favorable than Shore Community Bank.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancshares	18.40%	8.29%	1.02%
Shore Community Bank	N/A	N/A	N/A

Insider and Institutional Ownership

69.9% of First Bancshares shares are held by institutional investors. 3.5% of First Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

First Bancshares beats Shore Community Bank on 9 of the 9 factors compared between the two stocks.

About First Bancshares

The First Bancshares, Inc. operates as the bank holding company for The First Bank that provides general commercial and retail banking services. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement and health savings accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes, construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers online internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant services, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It serves small to medium-sized businesses, professional concerns, individuals, associations, organizations, and governmental authorities. The company operates full-service banking and financial service offices, motor bank facility, and loan production offices in Mississippi, Alabama, Florida, Georgia, and Louisiana. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.

About Shore Community Bank

Shore Community Bank, a state chartered bank, provides banking products and services to businesses and individuals in Ocean County, New Jersey. The company's deposit products include checking accounts, savings accounts, certificates of deposit, individual retirement accounts, money market accounts, visa/mastercard merchant deposit accounts, and payroll/direct deposit accounts. Its loan portfolio comprises personal, home equity, term, and demand loans; lines of credit; letters of credit; commercial mortgages; and construction lending. The company also offers direct deposit and electronic transfer, wire transfer, ACH origination, night depository, tenant rent security, signature guarantee, remote deposit, notary, and automated asset management services; safe deposit boxes, escrow accounts, and debit cards, as well as online and telephone banking services. As of April 28, 2016, it operated five banking offices located in Toms River, Jackson, and Manahawkin, New Jersey. Shore Community Bank was incorporated in 1996 and is headquartered in Toms River, New Jersey.