First National (NASDAQ:FXNC) vs. Third Coast Bancshares (NASDAQ:TCBX) Head-To-Head Comparison

First National (NASDAQ:FXNC) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares First National and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National	15.19%	10.82%	0.94%
Third Coast Bancshares	16.30%	12.05%	1.17%

Institutional & Insider Ownership

33.9% of First National shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 14.3% of First National shares are owned by company insiders. Comparatively, 10.3% of Third Coast Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares First National and Third Coast Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National	$116.51 million	2.15	$17.70 million	$1.97	14.04
Third Coast Bancshares	$207.74 million	3.13	$47.67 million	$3.79	10.41

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

Analyst Ratings

This is a summary of current recommendations and price targets for First National and Third Coast Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	0	1	0	3.00
Third Coast Bancshares	0	2	3	0	2.60

Third Coast Bancshares has a consensus target price of $45.33, suggesting a potential upside of 14.92%. Given Third Coast Bancshares’ higher probable upside, analysts clearly believe Third Coast Bancshares is more favorable than First National.

Dividends

First National pays an annual dividend of $0.68 per share and has a dividend yield of 2.5%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 42.8%. First National pays out 34.5% of its earnings in the form of a dividend. Third Coast Bancshares pays out 445.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First National has raised its dividend for 10 consecutive years.

Volatility and Risk

First National has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Summary

Third Coast Bancshares beats First National on 11 of the 17 factors compared between the two stocks.

About First National

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. In addition, the company's loan products include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. Further, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Additionally, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.