Critical Contrast: Virginia National Bankshares (NASDAQ:VABK) and Pioneer Bankshares (OTCMKTS:PNBI)

Virginia National Bankshares (NASDAQ:VABK) and Pioneer Bankshares (OTCMKTS:PNBI) are both small-cap 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.

Dividends

Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.4%. Pioneer Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.8%. Virginia National Bankshares pays out 39.0% of its earnings in the form of a dividend. Pioneer Bankshares pays out 28.1% 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.

Earnings and Valuation

This table compares Virginia National Bankshares and Pioneer Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virginia National Bankshares	$83.34 million	2.77	$19.26 million	$3.69	11.56
Pioneer Bankshares	$20.97 million	1.93	$3.98 million	$3.98	10.05

Virginia National Bankshares has higher revenue and earnings than Pioneer Bankshares. Pioneer Bankshares 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.

Institutional & Insider Ownership

37.4% of Virginia National Bankshares shares are held by institutional investors. 14.0% of Virginia National Bankshares shares are held by company insiders. Comparatively, 13.7% of Pioneer Bankshares 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Virginia National Bankshares and Pioneer Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virginia National Bankshares	0	1	0	0	2.00
Pioneer Bankshares	0	0	0	0	0.00

Risk and Volatility

Virginia National Bankshares has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Pioneer Bankshares has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Virginia National Bankshares	24.15%	11.15%	1.23%
Pioneer Bankshares	18.99%	N/A	N/A

Summary

Virginia National Bankshares beats Pioneer Bankshares on 12 of the 14 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 Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services to individual consumers, small to medium size businesses, and professional community in the United States. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise personal installment and single-pay, and auto loans; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction, as well as home mortgage and home equity loans. In addition, the company provides credit and debit cards, safe deposit boxes, online and mobile banking tools, merchant services, and cash management services. Further, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed, and variable annuities. Additionally, the company provides personalized investment advisory services, as well as securities and insurance products and services. Pioneer Bankshares, Inc. was founded in 1909 and is headquartered in Stanley, Virginia.