Bancorp (NASDAQ:TBBK) and National Bankshares (NASDAQ:NKSH) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Valuation and Earnings

This table compares Bancorp and National Bankshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bancorp $213.56 million 2.60 $21.67 million $0.51 19.25
National Bankshares $51.64 million 6.15 $14.09 million N/A N/A

Bancorp has higher revenue and earnings than National Bankshares.

Dividends

National Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 2.5%. Bancorp does not pay a dividend. National Bankshares has raised its dividend for 16 consecutive years.

Volatility and Risk

Bancorp has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Bancorp and National Bankshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bancorp 0 2 0 1 2.67
National Bankshares 0 0 2 0 3.00

Bancorp currently has a consensus price target of $11.00, suggesting a potential upside of 12.02%. National Bankshares has a consensus price target of $49.00, suggesting a potential upside of 7.46%. Given Bancorp’s higher possible upside, equities research analysts clearly believe Bancorp is more favorable than National Bankshares.

Institutional & Insider Ownership

79.9% of Bancorp shares are owned by institutional investors. Comparatively, 36.5% of National Bankshares shares are owned by institutional investors. 11.1% of Bancorp shares are owned by insiders. Comparatively, 3.7% of National Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Bancorp and National Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bancorp 6.61% 9.81% 0.75%
National Bankshares 27.73% 8.50% 1.26%

Bancorp Company Profile

The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank that provides banking products and services in the United States. The company offers a range of deposit products and services, including checking accounts, savings accounts, money market accounts, commercial accounts, and prepaid and debit cards. It also provides securities backed lines of credit, vehicle fleet and other equipment leasing, small business administration loans, and loans generated for sale into capital markets primarily through commercial mortgage backed securities. In addition, it offers private label banking; credit and debit card payment processing for independent service organizations; institutional banking; and Internet banking services. The Bancorp, Inc. was founded in 1999 and is based in Wilmington, Delaware.

National Bankshares Company Profile

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking 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 deposits, 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 merchant credit card services, and business and consumer debit and credit cards; letters of credit, night depository, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services for individual and business customers; non-deposit investment and insurance products; and telephone and Internet banking services. As of February 22, 2018, it operated 25 full service offices and a loan production office in Southwest Virginia. National Bankshares, Inc. was founded in 1891 and is headquartered in Blacksburg, Virginia.

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