Financial Survey: Wintrust Financial (NASDAQ:WTFC) & First Community (NASDAQ:FCCO)

Wintrust Financial (NASDAQ:WTFCGet Free Report) and First Community (NASDAQ:FCCOGet Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Wintrust Financial 18.71% 13.23% 1.14%
First Community 14.25% 9.43% 0.67%

Institutional and Insider Ownership

93.5% of Wintrust Financial shares are owned by institutional investors. Comparatively, 61.3% of First Community shares are owned by institutional investors. 1.4% of Wintrust Financial shares are owned by insiders. Comparatively, 5.1% of First Community shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Wintrust Financial pays an annual dividend of $1.80 per share and has a dividend yield of 1.8%. First Community pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. Wintrust Financial pays out 18.8% of its earnings in the form of a dividend. First Community pays out 36.4% 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. Wintrust Financial has increased its dividend for 11 consecutive years and First Community has increased its dividend for 2 consecutive years.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wintrust Financial $3.33 billion 1.88 $622.63 million $9.58 10.53
First Community $83.12 million 1.56 $11.84 million $1.54 11.03

Wintrust Financial has higher revenue and earnings than First Community. Wintrust Financial 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 Ratings

This is a breakdown of recent recommendations and price targets for Wintrust Financial and First Community, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wintrust Financial 0 0 10 1 3.09
First Community 0 0 2 0 3.00

Wintrust Financial currently has a consensus price target of $107.17, suggesting a potential upside of 6.19%. First Community has a consensus price target of $21.00, suggesting a potential upside of 23.67%. Given First Community’s higher probable upside, analysts plainly believe First Community is more favorable than Wintrust Financial.

Volatility & Risk

Wintrust Financial has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, First Community has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Summary

Wintrust Financial beats First Community on 14 of the 18 factors compared between the two stocks.

About Wintrust Financial

(Get Free Report)

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; other specialty finance services; equipment financing through structured loan and lease products; and property and casualty premium financing; as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides wealth management services, such as trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

About First Community

(Get Free Report)

First Community Corporation operates as the bank holding company for First Community Bank which offers 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 consist of 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 other banking services, which include 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.

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