LCNB (NASDAQ:LCNB) vs. Virginia National Bankshares (NASDAQ:VABK) Financial Analysis

Virginia National Bankshares (NASDAQ:VABK) and LCNB (NASDAQ:LCNB) 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, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

37.4% of Virginia National Bankshares shares are owned by institutional investors. Comparatively, 34.7% of LCNB shares are owned by institutional investors. 14.0% of Virginia National Bankshares shares are owned by company insiders. Comparatively, 6.0% of LCNB shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Virginia National Bankshares and LCNB, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virginia National Bankshares	0	0	1	0	3.00
LCNB	0	1	0	0	2.00

Profitability

This table compares Virginia National Bankshares and LCNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virginia National Bankshares	21.37%	10.58%	1.10%
LCNB	18.63%	9.05%	1.03%

Valuation & Earnings

This table compares Virginia National Bankshares and LCNB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virginia National Bankshares	$83.52 million	2.64	$16.97 million	$3.30	12.39
LCNB	$125.42 million	1.86	$13.49 million	$1.67	9.86

Virginia National Bankshares has higher earnings, but lower revenue than LCNB. LCNB is trading at a lower price-to-earnings ratio than Virginia National Bankshares, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Virginia National Bankshares has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, LCNB has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Dividends

Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.5%. LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 5.3%. Virginia National Bankshares pays out 43.6% of its earnings in the form of a dividend. LCNB pays out 52.7% 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. LCNB has raised its dividend for 7 consecutive years. LCNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Virginia National Bankshares beats LCNB on 12 of the 16 factors compared between the two stocks.

About Virginia National Bankshares

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking services. The company operates through Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. In addition, the company offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. Further, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, and brokerage services. Additionally, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations in the Charlottesville/Albemarle County, Fauquier County, Manassas, Prince William County, Richmond, and Winchester market areas in Virginia. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.