Pinnacle Bankshares (OTCMKTS:PPBN) and Regions Financial (NYSE:RF) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Pinnacle Bankshares 14.64% 8.84% 0.77%
Regions Financial 27.23% 10.84% 1.27%

Earnings and Valuation

This table compares Pinnacle Bankshares and Regions Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pinnacle Bankshares $20.37 million 2.12 $2.74 million N/A N/A
Regions Financial $6.41 billion 2.50 $1.76 billion $1.36 11.40

Regions Financial has higher revenue and earnings than Pinnacle Bankshares.

Insider & Institutional Ownership

7.3% of Pinnacle Bankshares shares are owned by institutional investors. Comparatively, 76.9% of Regions Financial shares are owned by institutional investors. 6.5% of Pinnacle Bankshares shares are owned by insiders. Comparatively, 0.8% of Regions Financial 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.

Risk and Volatility

Pinnacle Bankshares has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Regions Financial has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Pinnacle Bankshares and Regions Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle Bankshares 0 0 0 0 N/A
Regions Financial 2 4 6 1 2.46

Regions Financial has a consensus target price of $18.31, suggesting a potential upside of 18.05%. Given Regions Financial’s higher probable upside, analysts clearly believe Regions Financial is more favorable than Pinnacle Bankshares.

Dividends

Pinnacle Bankshares pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. Regions Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Regions Financial pays out 41.2% of its earnings in the form of a dividend. Regions Financial has increased its dividend for 6 consecutive years. Regions Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Regions Financial beats Pinnacle Bankshares on 13 of the 16 factors compared between the two stocks.

About Pinnacle Bankshares

Pinnacle Bankshares Corporation operates as a bank holding company for First National Bank that provides a range of commercial and retail banking products and services in the United States. The company offers checking and savings accounts, money market accounts, individual retirement accounts, certificates of deposit, and savings and time deposits. It also provides residential and commercial mortgages, home equity loans, consumer installment loans, construction loans, agricultural loans, investment loans, small business loans, commercial lines of credit, letters of credit, real estate mortgages, and student loans, as well as overdraft protection. It also provides insurance, including property and casualty, life, and health, as well as investment and annuity products; merchant bankcard processing and cash management services; surety bonds; and check and credit cards, telephone banking, ATM, simplified employee pensions, and e-commerce and other services. The company offers its products and services through nine offices, including main office and Vista Branch in the Town of Altavista; the Airport, Timberlake, and Rustburg branches in Campbell County; Old Forest Road branch and Odd Fellows Road branch in the City of Lynchburg; Forest branch in Bedford County; and Amherst branch in the Town of Amherst. Pinnacle Bankshares Corporation was founded in 1908 and is headquartered in Altavista, Virginia.

About Regions Financial

Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. Its Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending, as well as equipment lease financing services and corresponding deposits. This segment serves corporate, middle market, and commercial real estate developers and investors. The company's Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, branch small business and indirect loans, consumer credit cards, and other consumer loans, as well as the corresponding deposit relationships. Its Wealth Management segment offers wealth management products and services, including credit related products, trust and investment management, asset management, retirement and savings solutions, estate planning, and personal and commercial insurance products to individuals, businesses, governmental institutions, and non-profit entities. The company also provides insurance coverage for various lines of personal and commercial insurance, such as property, vehicle, casualty, life, health, and accident insurance, as well as crop and life insurance; services related to employee benefits and wholesale insurance broking; and equipment financing products, as well as offers securities and advisory services. In addition, it offers securities brokerage, merger and acquisition advisory, trust, and other specialty financing services. As of February 8, 2018, the company operated 1,500 banking offices and 1,900 ATMs. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.

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