Pinnacle Bankshares (OTCMKTS:PPBN) vs. Republic Bancorp (NASDAQ:RBCAA) Head to Head Survey

Pinnacle Bankshares (OTCMKTS:PPBN) and Republic Bancorp (NASDAQ:RBCAA) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Earnings and Valuation

This table compares Pinnacle Bankshares and Republic Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle Bankshares	$59.05 million	1.75	$10.77 million	$4.84	9.56
Republic Bancorp	$521.34 million	2.59	$131.32 million	$6.72	10.27

Republic Bancorp has higher revenue and earnings than Pinnacle Bankshares. Pinnacle Bankshares is trading at a lower price-to-earnings ratio than Republic Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Pinnacle Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.4%. Republic Bancorp pays an annual dividend of $1.80 per share and has a dividend yield of 2.6%. Pinnacle Bankshares pays out 23.1% of its earnings in the form of a dividend. Republic Bancorp pays out 26.8% 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. Republic Bancorp has raised its dividend for 27 consecutive years. Republic Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Pinnacle Bankshares and Republic Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bankshares	18.24%	12.74%	1.04%
Republic Bancorp	25.19%	12.39%	1.87%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Pinnacle Bankshares and Republic Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinnacle Bankshares	0	0	0	0	0.00
Republic Bancorp	0	2	1	0	2.33

Republic Bancorp has a consensus price target of $69.00, suggesting a potential upside of 0.00%. Given Republic Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Republic Bancorp is more favorable than Pinnacle Bankshares.

Institutional and Insider Ownership

3.8% of Pinnacle Bankshares shares are held by institutional investors. Comparatively, 24.4% of Republic Bancorp shares are held by institutional investors. 6.5% of Pinnacle Bankshares shares are held by company insiders. Comparatively, 56.4% of Republic Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Pinnacle Bankshares has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Republic Bancorp has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Summary

Republic Bancorp beats Pinnacle Bankshares on 15 of the 17 factors compared between the two stocks.

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.

About Republic Bancorp

Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company that provides various banking products and services in the United States. It operates in six segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions. The company offers demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit; and retail and commercial mortgage, construction and land development, consumer, aircraft, and marine loans. It also provides credit cards; title insurance and other financial products and services; and private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it offers short-term and revolving credit facilities to mortgage bankers through mortgage warehouse lines of credit; mortgage banking; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; payments-related products and services to consumers through third party service providers; and consumer credit products. The company offers its services through full-services banking centers in Kentucky, Indiana, Florida, Ohio, and Tennessee. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.