National Bankshares (NASDAQ:NKSH – Get Free Report) and LCNB (NASDAQ:LCNB – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Institutional & Insider Ownership
29.7% of National Bankshares shares are owned by institutional investors. Comparatively, 34.7% of LCNB shares are owned by institutional investors. 2.8% of National Bankshares shares are owned by insiders. Comparatively, 5.8% of LCNB 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 & Risk
National Bankshares has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, LCNB has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Dividends
Analyst Ratings
This is a breakdown of current recommendations for National Bankshares and LCNB, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
National Bankshares | 0 | 1 | 0 | 0 | 2.00 |
LCNB | 0 | 0 | 0 | 0 | N/A |
National Bankshares currently has a consensus target price of $31.00, suggesting a potential upside of 6.35%. Given National Bankshares’ higher possible upside, research analysts plainly believe National Bankshares is more favorable than LCNB.
Profitability
This table compares National Bankshares and LCNB’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
National Bankshares | 19.00% | 10.17% | 0.81% |
LCNB | 10.16% | 7.31% | 0.75% |
Valuation and Earnings
This table compares National Bankshares and LCNB’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
National Bankshares | $68.19 million | 2.52 | $15.69 million | $2.26 | 12.90 |
LCNB | $68.03 million | 2.82 | $12.63 million | $0.92 | 14.74 |
National Bankshares has higher revenue and earnings than LCNB. National Bankshares is trading at a lower price-to-earnings ratio than LCNB, indicating that it is currently the more affordable of the two stocks.
Summary
National Bankshares beats LCNB on 8 of the 14 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 LCNB
LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.
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