Truist Financial (NYSE:TFC) and 1st Colonial Bancorp (OTCMKTS:FCOB) Financial Contrast

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Truist Financial and 1st Colonial Bancorp, as reported by MarketBeat.com.

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

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

Profitability

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

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

Insider and Institutional Ownership

71.3% of Truist Financial shares are owned by institutional investors. Comparatively, 13.4% of 1st Colonial Bancorp 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, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Truist Financial and 1st Colonial Bancorp”s revenue, earnings per share (EPS) and valuation.

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

1st Colonial Bancorp has lower revenue, but higher earnings 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.

Volatility & Risk

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

Summary

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

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.

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.