Financial Survey: FB Bancorp (NASDAQ:FBLA) and Pinnacle Bankshares (OTCMKTS:PPBN)

Pinnacle Bankshares (OTCMKTS:PPBN) and FB Bancorp (NASDAQ:FBLA) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Pinnacle Bankshares and FB Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinnacle Bankshares	0	0	0	0	0.00
FB Bancorp	1	0	0	0	1.00

Valuation & Earnings

This table compares Pinnacle Bankshares and FB Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle Bankshares	$59.05 million	1.89	$10.77 million	$5.21	9.94
FB Bancorp	$69.94 million	3.20	$1.25 million	$0.04	346.75

Pinnacle Bankshares has higher earnings, but lower revenue than FB Bancorp. Pinnacle Bankshares is trading at a lower price-to-earnings ratio than FB Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pinnacle Bankshares and FB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bankshares	19.32%	13.24%	1.10%
FB Bancorp	0.83%	0.93%	0.24%

Volatility & Risk

Pinnacle Bankshares has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, FB Bancorp has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500.

Institutional and Insider Ownership

3.8% of Pinnacle Bankshares shares are owned by institutional investors. 6.5% of Pinnacle Bankshares shares are owned by insiders. Comparatively, 3.9% of FB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pinnacle Bankshares beats FB Bancorp on 8 of the 12 factors compared between the two stocks.

About Pinnacle Bankshares

Pinnacle Bankshares Corporation operates as the bank holding company for First National Bank that provides a range of commercial and retail banking products and services. The company accepts checking accounts, savings and time deposits, individual retirement accounts, certificates of deposit, and money market accounts. Its loan products include residential and commercial mortgage loans, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial lines of credit, and letters of credit. The company also provides credit cards; insurance products, including property and casualty, life, and health; investment and annuity products; and overdraft protection, merchant bankcard processing, cash management, remote deposit capture, night drop, safe deposit boxes, and notary services, as well as telephone, mobile, and online banking services. It operates branches in Amherst County, Bedford County, Campbell County, Pittsylvania County; and the city of Danville, Lynchburg and Charlottesville. The company was founded in 1908 and is headquartered in Altavista, Virginia.

About FB Bancorp

FB Bancorp Inc. operates as a bank holding company for Fidelity Bank. The Company, through its subsidiaries, provides deposit accounts, mortgages, home equity and consumer loans, credit and debit cards, online and mobile banking, investments and other financial services. FB Bancorp Inc. is based in New Orleans.