Critical Contrast: Patriot National Bancorp (NASDAQ:PNBK) and Pinnacle Bankshares (NASDAQ:PPBN)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Patriot National Bancorp and Pinnacle Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patriot National Bancorp 0 1 0 0 2.00
Pinnacle Bankshares 0 0 0 0 N/A

Dividends

Patriot National Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Pinnacle Bankshares pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. Patriot National Bancorp has raised its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Patriot National Bancorp and Pinnacle Bankshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patriot National Bancorp $42.00 million 1.21 $3.20 million N/A N/A
Pinnacle Bankshares $22.47 million 2.17 $4.16 million N/A N/A

Pinnacle Bankshares has lower revenue, but higher earnings than Patriot National Bancorp.

Volatility and Risk

Patriot National Bancorp has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Pinnacle Bankshares has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Patriot National Bancorp -2.45% -1.65% -0.12%
Pinnacle Bankshares 20.46% 11.75% 1.05%

Insider and Institutional Ownership

6.2% of Patriot National Bancorp shares are held by institutional investors. Comparatively, 6.4% of Pinnacle Bankshares shares are held by institutional investors. 66.1% of Patriot National Bancorp shares are held by company insiders. Comparatively, 6.5% of Pinnacle Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Pinnacle Bankshares beats Patriot National Bancorp on 8 of the 11 factors compared between the two stocks.

About Patriot National Bancorp

Patriot National Bancorp, Inc. operates as the bank holding company for Patriot Bank, N.A. that provides community banking services to individuals, small and medium-sized businesses, and professionals. The company offers consumer and commercial deposit accounts, such as checking accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, savings accounts, individual retirement accounts, and health savings accounts, as well as certificate of deposit account registry service. Its loan portfolio comprises commercial real estate, commercial business, construction, and consumer loans. The company also offers automated clearing house transfers, lockbox, Internet banking, bill payment, remote deposit capture, debit card, money order, traveler's check, and automatic teller machine services. Patriot National Bancorp, Inc. provides its products and services through its main office in Stamford; seven branch offices in Connecticut; and two branch offices in New York. The company was founded in 1994 and is headquartered in Stamford, Connecticut. Patriot National Bancorp, Inc. is a subsidiary of PNBK Holdings LLC.

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.

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