Financial Survey: 1st Colonial Bancorp (OTCMKTS:FCOB) vs. Truist Financial (NYSE:TFC)

1st Colonial Bancorp (OTCMKTS:FCOB) and Truist Financial (NYSE:TFC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares 1st Colonial Bancorp and Truist Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Colonial Bancorp	$42.11 million	1.66	$7.43 million	$1.53	9.55
Truist Financial	$33.25 billion	1.87	-$1.09 billion	($1.43)	-32.73

1st Colonial Bancorp has higher earnings, but lower revenue than Truist Financial. Truist Financial is trading at a lower price-to-earnings ratio than 1st Colonial Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

13.4% of 1st Colonial Bancorp shares are owned by institutional investors. Comparatively, 71.3% of Truist Financial shares are owned by institutional investors. 0.2% of Truist Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

1st Colonial Bancorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Truist Financial has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares 1st Colonial Bancorp and Truist Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Colonial Bancorp	16.64%	10.74%	0.92%
Truist Financial	-4.89%	9.35%	0.98%

Analyst Recommendations

This is a summary of current ratings for 1st Colonial Bancorp and Truist Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Colonial Bancorp	0	0	0	0	0.00
Truist Financial	0	11	11	0	2.50

Truist Financial has a consensus target price of $47.67, suggesting a potential upside of 1.85%. Given Truist Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Truist Financial is more favorable than 1st Colonial Bancorp.

Summary

Truist Financial beats 1st Colonial Bancorp on 9 of the 14 factors compared between the two stocks.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.

About Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.