F.N.B. (NYSE:FNB – Get Free Report) and National Bankshares (NASDAQ:NKSH – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Volatility & Risk
F.N.B. has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Insider & Institutional Ownership
79.3% of F.N.B. shares are owned by institutional investors. Comparatively, 29.7% of National Bankshares shares are owned by institutional investors. 1.4% of F.N.B. shares are owned by company insiders. Comparatively, 3.2% of National Bankshares shares are owned by company 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| F.N.B. | $2.57 billion | 2.25 | $465.00 million | $1.28 | 12.57 |
| National Bankshares | $50.05 million | 3.69 | $7.62 million | $1.77 | 16.38 |
F.N.B. has higher revenue and earnings than National Bankshares. F.N.B. is trading at a lower price-to-earnings ratio than National Bankshares, indicating that it is currently the more affordable of the two stocks.
Dividends
F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.0%. National Bankshares pays an annual dividend of $1.46 per share and has a dividend yield of 5.0%. F.N.B. pays out 37.5% of its earnings in the form of a dividend. National Bankshares pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares F.N.B. and National Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| F.N.B. | 17.88% | 7.94% | 1.04% |
| National Bankshares | 13.58% | 7.69% | 0.70% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for F.N.B. and National Bankshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| F.N.B. | 0 | 0 | 7 | 0 | 3.00 |
| National Bankshares | 0 | 0 | 1 | 0 | 3.00 |
F.N.B. currently has a consensus target price of $18.64, indicating a potential upside of 15.90%. National Bankshares has a consensus target price of $38.00, indicating a potential upside of 31.03%. Given National Bankshares’ higher possible upside, analysts clearly believe National Bankshares is more favorable than F.N.B..
Summary
F.N.B. beats National Bankshares on 9 of the 15 factors compared between the two stocks.
About F.N.B.
F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.
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.
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