First National (NASDAQ:FXNC) vs. Simmons First National (NASDAQ:SFNC) Critical Survey

Simmons First National (NASDAQ:SFNC) and First National (NASDAQ:FXNC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Risk & Volatility

Simmons First National has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, First National has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Valuation and Earnings

This table compares Simmons First National and First National”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simmons First National	$1.46 billion	1.87	$152.69 million	($2.93)	-6.44
First National	$92.70 million	2.37	$6.97 million	$1.26	19.37

Simmons First National has higher revenue and earnings than First National. Simmons First National is trading at a lower price-to-earnings ratio than First National, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Simmons First National and First National, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simmons First National	1	3	2	2	2.63
First National	0	2	0	0	2.00

Simmons First National currently has a consensus price target of $22.33, indicating a potential upside of 18.35%. First National has a consensus price target of $28.50, indicating a potential upside of 16.80%. Given Simmons First National’s stronger consensus rating and higher probable upside, equities analysts plainly believe Simmons First National is more favorable than First National.

Profitability

This table compares Simmons First National and First National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simmons First National	-29.70%	5.84%	0.78%
First National	9.53%	11.34%	0.96%

Insider & Institutional Ownership

27.6% of Simmons First National shares are held by institutional investors. Comparatively, 33.9% of First National shares are held by institutional investors. 1.9% of Simmons First National shares are held by company insiders. Comparatively, 14.3% of First National shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Simmons First National pays an annual dividend of $0.85 per share and has a dividend yield of 4.5%. First National pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. Simmons First National pays out -29.0% of its earnings in the form of a dividend. First National pays out 54.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Simmons First National has increased its dividend for 14 consecutive years and First National has increased its dividend for 10 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Simmons First National beats First National on 10 of the 18 factors compared between the two stocks.

About Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

About First National

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. In addition, the company's loan products include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. Further, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Additionally, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.