Thomasville Bancshares (OTCMKTS:THVB) and First National (NASDAQ:FXNC) Critical Review

Thomasville Bancshares (OTCMKTS:THVB) and First National (NASDAQ:FXNC) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Thomasville Bancshares and First National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomasville Bancshares	0	0	0	0	0.00
First National	0	2	0	0	2.00

First National has a consensus price target of $28.50, suggesting a potential upside of 10.04%. Given First National’s stronger consensus rating and higher possible upside, analysts plainly believe First National is more favorable than Thomasville Bancshares.

Insider and Institutional Ownership

33.9% of First National shares are held by institutional investors. 14.3% of First National shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Thomasville Bancshares has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, First National has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Thomasville Bancshares	N/A	N/A	N/A
First National	9.53%	11.34%	0.96%

Dividends

Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 3.1%. First National pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. First National pays out 54.0% of its earnings in the form of a dividend. First National has increased its dividend for 10 consecutive years.

Earnings & Valuation

This table compares Thomasville Bancshares and First National”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomasville Bancshares	$137.59 million	4.29	$39.27 million	N/A	N/A
First National	$85.94 million	2.72	$6.97 million	$1.26	20.56

Thomasville Bancshares has higher revenue and earnings than First National.

Summary

First National beats Thomasville Bancshares on 9 of the 14 factors compared between the two stocks.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.

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.