Critical Review: Benchmark Bankshares (OTCMKTS:BMBN) & Renasant (NASDAQ:RNST)

Renasant (NASDAQ:RNST) and Benchmark Bankshares (OTCMKTS:BMBN) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for Renasant and Benchmark Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renasant	0	2	3	1	2.83
Benchmark Bankshares	0	0	0	0	0.00

Renasant presently has a consensus target price of $41.00, suggesting a potential upside of 21.23%. Given Renasant’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Renasant is more favorable than Benchmark Bankshares.

Profitability

This table compares Renasant and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Renasant	17.91%	6.58%	0.93%
Benchmark Bankshares	N/A	N/A	N/A

Dividends

Renasant pays an annual dividend of $0.88 per share and has a dividend yield of 2.6%. Benchmark Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 3.4%. Renasant pays out 27.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

77.3% of Renasant shares are owned by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are owned by institutional investors. 2.8% of Renasant shares are owned by company insiders. Comparatively, 14.0% of Benchmark Bankshares shares are owned 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.

Valuation and Earnings

This table compares Renasant and Benchmark Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Renasant	$668.43 million	3.22	$195.46 million	$3.22	10.50
Benchmark Bankshares	$73.53 million	1.58	$15.85 million	N/A	N/A

Renasant has higher revenue and earnings than Benchmark Bankshares.

Volatility & Risk

Renasant has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Summary

Renasant beats Benchmark Bankshares on 12 of the 15 factors compared between the two stocks.

About Renasant

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. The company operates through Community Banks, Insurance, and Wealth Management segments. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and factoring equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate1-4 family mortgage; real estatecommercial mortgage; real estateconstruction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; administrative and compliance services; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.