First National of Nebraska (OTCMKTS:FINN) vs. Preferred Bank (NASDAQ:PFBC) Financial Comparison

Preferred Bank (NASDAQ:PFBC) and First National of Nebraska (OTCMKTS:FINN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Institutional & Insider Ownership

72.8% of Preferred Bank shares are held by institutional investors. Comparatively, 0.7% of First National of Nebraska shares are held by institutional investors. 41.7% of First National of Nebraska shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Preferred Bank pays an annual dividend of $3.00 per share and has a dividend yield of 3.0%. First National of Nebraska pays an annual dividend of $160.00 per share and has a dividend yield of 1.1%. Preferred Bank pays out 30.5% of its earnings in the form of a dividend. Preferred Bank has increased its dividend for 5 consecutive years. Preferred Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Preferred Bank and First National of Nebraska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Preferred Bank	25.67%	16.91%	1.82%
First National of Nebraska	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Preferred Bank and First National of Nebraska, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Preferred Bank	0	2	2	1	2.80
First National of Nebraska	0	0	0	0	0.00

Preferred Bank presently has a consensus price target of $104.67, suggesting a potential upside of 3.89%. Given Preferred Bank’s stronger consensus rating and higher possible upside, equities analysts plainly believe Preferred Bank is more favorable than First National of Nebraska.

Risk and Volatility

Preferred Bank has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, First National of Nebraska has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Valuation and Earnings

This table compares Preferred Bank and First National of Nebraska”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Preferred Bank	$522.66 million	2.78	$130.66 million	$9.84	10.24
First National of Nebraska	$3.23 billion	1.21	$412.43 million	N/A	N/A

First National of Nebraska has higher revenue and earnings than Preferred Bank.

Summary

Preferred Bank beats First National of Nebraska on 12 of the 16 factors compared between the two stocks.

About Preferred Bank

Preferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals. The company accepts checking, savings, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts. It also provides real estate mortgage loans that are secured by retail, industrial, office, special purpose, and residential single and multi-family properties; real estate construction loans; commercial loans comprising lines of credit for working capital, term loans for capital expenditures, and commercial and stand-by letters of credit; and small business administration loans. In addition, the company offers trade finance services, including commercial and export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/trust receipt financing products, export financing, and bills purchase programs. Further, it provides cash management services; and internet, mobile, and tablet banking services. The company operates through full-service branch offices in the California counties of Los Angeles, Orange and San Francisco; Flushing, New York; Houston suburb of Sugar Land, Texas; and a satellite office in Manhattan, New York. The company was incorporated in 1991 and is headquartered in Los Angeles, California.

About First National of Nebraska

First National of Nebraska, Inc. operates as the bank holding company for First National Bank of Omaha that provides various banking products and services. The company offers checking, savings, and individual retirement accounts; certificates of deposit; and credit cards. It also provides personal loans and lines of credit; auto loans; mortgage loans; home equity lines of credit and loans; small business loans and lines of credit; small business administration loans; and commercial lending solutions. In addition, the company offers treasury management, debt consolidation, financial planning, retirement planning, wealth management, merchant, and payroll services; and personal, commercial, and farm insurance products. Further, it provides solutions for agribusiness, commercial real estate, healthcare, transportation, and correspondent banking; investment services, such as capital market and institutional asset management; and digital banking services. First National of Nebraska, Inc. was founded in 1857 and is headquartered in Omaha, Nebraska.