Financial Contrast: Potomac Bancshares (OTCMKTS:PTBS) and Pioneer Bankshares (OTCMKTS:PNBI)

Dividends

Potomac Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Pioneer Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.7%. Potomac Bancshares pays out 25.4% of its earnings in the form of a dividend. Pioneer Bankshares pays out 28.1% 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.

Risk & Volatility

Potomac Bancshares has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Pioneer Bankshares has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Institutional and Insider Ownership

5.3% of Potomac Bancshares shares are held by institutional investors. 4.4% of Potomac Bancshares shares are held by company insiders. Comparatively, 13.7% of Pioneer Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Potomac Bancshares and Pioneer Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Potomac Bancshares	N/A	N/A	N/A
Pioneer Bankshares	18.99%	N/A	N/A

Earnings and Valuation

This table compares Potomac Bancshares and Pioneer Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Potomac Bancshares	$54.90 million	1.86	$10.60 million	$2.36	9.64
Pioneer Bankshares	$20.97 million	1.98	$3.98 million	$3.98	10.34

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

Summary

Pioneer Bankshares beats Potomac Bancshares on 6 of the 11 factors compared between the two stocks.

About Potomac Bancshares

Potomac Bancshares, Inc. operates as the bank holding company for Bank of Charles Town that provides various banking products and services to individuals and businesses. The company offers checking, savings, and individual retirement accounts; and certificates of deposit (CD). It also provides personal loans, including new and used vehicle, home equity, unsecured home improvement and personal, retail equipment, and lot loans, as well as loans secured by CD, and home equity lines of credit; commercial loans for building or office purchases, commercial real estate and construction, and production and administrative equipment purchases; lines of credit; mortgage, commercial, term, residential and commercial construction, commercial real estate, and agricultural loans; and credit and debit cards. In addition, the company offers Card Pay, cash management, merchant, financial planning, trust and estate, investment management, wealth management, full-service brokerage, retirement and insurance planning and products, asset allocation and management, and college planning services, as well as telephone, mobile, and online banking services. Potomac Bancshares, Inc. was founded in 1871 and is based in Charles Town, West Virginia.

About Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services to individual consumers, small to medium size businesses, and professional community in the United States. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise personal installment and single-pay, and auto loans; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction, as well as home mortgage and home equity loans. In addition, the company provides credit and debit cards, safe deposit boxes, online and mobile banking tools, merchant services, and cash management services. Further, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed, and variable annuities. Additionally, the company provides personalized investment advisory services, as well as securities and insurance products and services. Pioneer Bankshares, Inc. was founded in 1909 and is headquartered in Stanley, Virginia.