Critical Review: Pinnacle Bankshares (PPBN) vs. Its Competitors

Profitability

This table compares Pinnacle Bankshares and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bankshares	18.14%	13.19%	1.03%
Pinnacle Bankshares Competitors	16.47%	9.97%	1.05%

Risk & Volatility

Pinnacle Bankshares has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Pinnacle Bankshares’ rivals have a beta of 0.63, indicating that their average share price is 37% less volatile than the S&P 500.

Insider & Institutional Ownership

3.8% of Pinnacle Bankshares shares are owned by institutional investors. Comparatively, 50.4% of shares of all “BANKS – SOUTHEAST” companies are owned by institutional investors. 6.5% of Pinnacle Bankshares shares are owned by insiders. Comparatively, 12.5% of shares of all “BANKS – SOUTHEAST” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Pinnacle Bankshares pays an annual dividend of $1.08 per share and has a dividend yield of 2.8%. Pinnacle Bankshares pays out 22.3% of its earnings in the form of a dividend. As a group, “BANKS – SOUTHEAST” companies pay a dividend yield of 2.1% and pay out 24.1% of their earnings in the form of a dividend. Pinnacle Bankshares is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Pinnacle Bankshares and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pinnacle Bankshares	$55.62 million	$9.18 million	8.10
Pinnacle Bankshares Competitors	$610.75 million	$154.64 million	14.09

Pinnacle Bankshares’ rivals have higher revenue and earnings than Pinnacle Bankshares. Pinnacle Bankshares is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Pinnacle Bankshares rivals beat Pinnacle Bankshares on 7 of the 11 factors compared.

About Pinnacle Bankshares

Pinnacle Bankshares Corporation operates as the bank holding company for First National Bank that provides a range of commercial and retail banking products and services. The company accepts checking accounts, savings and time deposits, individual retirement accounts, certificates of deposit, and money market accounts. Its loan products include residential and commercial mortgage loans, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial lines of credit, and letters of credit. The company also provides credit cards; insurance products, including property and casualty, life, and health; investment and annuity products; and overdraft protection, merchant bankcard processing, cash management, remote deposit capture, night drop, safe deposit boxes, and notary services, as well as telephone, mobile, and online banking services. It operates branches in Amherst County, Bedford County, Campbell County, Pittsylvania County; and the city of Danville, Lynchburg and Charlottesville. The company was founded in 1908 and is headquartered in Altavista, Virginia.