Head-To-Head Review: National Bankshares (NASDAQ:NKSH) versus F.N.B. (NYSE:FNB)

National Bankshares (NASDAQ:NKSH) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares National Bankshares and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Bankshares	13.58%	7.69%	0.70%
F.N.B.	17.88%	7.94%	1.04%

Earnings & Valuation

This table compares National Bankshares and F.N.B.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bankshares	$50.05 million	3.69	$7.62 million	$1.77	16.38
F.N.B.	$2.57 billion	2.25	$465.00 million	$1.28	12.57

F.N.B. has higher revenue and earnings than National Bankshares. F.N.B. is trading at a lower price-to-earnings ratio than National Bankshares, indicating that it is currently the more affordable of the two stocks.

Dividends

National Bankshares pays an annual dividend of $1.46 per share and has a dividend yield of 5.0%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.0%. National Bankshares pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. F.N.B. pays out 37.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

29.7% of National Bankshares shares are owned by institutional investors. Comparatively, 79.3% of F.N.B. shares are owned by institutional investors. 3.2% of National Bankshares shares are owned by company insiders. Comparatively, 1.4% of F.N.B. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

National Bankshares has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for National Bankshares and F.N.B., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bankshares	0	0	1	0	3.00
F.N.B.	0	0	7	0	3.00

National Bankshares presently has a consensus target price of $38.00, suggesting a potential upside of 31.03%. F.N.B. has a consensus target price of $18.64, suggesting a potential upside of 15.90%. Given National Bankshares’ higher possible upside, analysts plainly believe National Bankshares is more favorable than F.N.B..

Summary

F.N.B. beats National Bankshares on 9 of the 15 factors compared between the two stocks.

About National Bankshares

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest-bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.