First National Bank Alaska (OTCMKTS:FBAK) and Renasant (NASDAQ:RNST) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Institutional and Insider Ownership

0.3% of First National Bank Alaska shares are owned by institutional investors. Comparatively, 59.2% of Renasant shares are owned by institutional investors. 3.4% of Renasant shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

First National Bank Alaska has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Renasant has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for First National Bank Alaska and Renasant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First National Bank Alaska 0 0 0 0 N/A
Renasant 0 3 2 0 2.40

Renasant has a consensus target price of $41.50, suggesting a potential upside of 23.33%. Given Renasant’s higher probable upside, analysts clearly believe Renasant is more favorable than First National Bank Alaska.

Dividends

First National Bank Alaska pays an annual dividend of $12.80 per share and has a dividend yield of 4.9%. Renasant pays an annual dividend of $0.84 per share and has a dividend yield of 2.5%. Renasant pays out 34.7% of its earnings in the form of a dividend. Renasant has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares First National Bank Alaska and Renasant’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First National Bank Alaska N/A N/A $41.40 million N/A N/A
Renasant $506.89 million 3.90 $92.18 million $2.42 13.90

Renasant has higher revenue and earnings than First National Bank Alaska.

Profitability

This table compares First National Bank Alaska and Renasant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First National Bank Alaska N/A N/A N/A
Renasant 20.84% 8.70% 1.33%

Summary

Renasant beats First National Bank Alaska on 11 of the 13 factors compared between the two stocks.

First National Bank Alaska Company Profile

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. It offers personal banking products and services, including savings and checking accounts; money market deposits and safe deposit services; certificates of deposit; individual retirement accounts; and personal and home equity loans. The company also provides business banking products and services, such as business checking and savings accounts, and money market deposits; cash management, safe deposit, and merchant services; and loans for stability and growth. In addition, it offers debit and credit cards, trust and investment management, online and mobile banking, escrow, and convenience banking services. The company operates through 29 branches. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

Renasant Company Profile

Renasant Corporation operates as a bank holding company for Renasant Bank, which provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings, money market, individual retirement, and health savings accounts, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and business and personal, and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and cash management services. The Insurance segment provides insurance agency services, including commercial and personal insurance products through third-party insurance carriers. The Wealth Management segment offers range of wealth management and fiduciary services, which include administration and management of trust accounts comprising personal and corporate benefit accounts, self-directed IRA's, and custodial accounts; administers qualified retirement plans, profit sharing and other employee benefit plans, personal trusts, and estates; and annuities, mutual funds, and other investment services through a third party broker-dealer. As of December 31, 2017, the company had 180 banking, insurance, and financial services offices located in Mississippi, Tennessee, Alabama, Florida, and Georgia; 136 full-service branches and 13 limited-service branches; and 136 ATMs at on-premise locations and 16 ATMs located at off-premise sites. Renasant Corporation was founded in 1904 and is based in Tupelo, Mississippi.

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