Critical Review: Pioneer Bankshares (OTCMKTS:PNBI) and Mvb Financial (NASDAQ:MVBF)

Mvb Financial (NASDAQ:MVBF) and Pioneer Bankshares (OTCMKTS:PNBI) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Mvb Financial and Pioneer Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mvb Financial	13.98%	2.54%	0.25%
Pioneer Bankshares	18.99%	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mvb Financial and Pioneer Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mvb Financial	0	2	4	0	2.67
Pioneer Bankshares	0	0	0	0	0.00

Mvb Financial presently has a consensus price target of $31.25, indicating a potential upside of 9.96%. Given Mvb Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Mvb Financial is more favorable than Pioneer Bankshares.

Valuation and Earnings

This table compares Mvb Financial and Pioneer Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mvb Financial	$200.74 million	1.82	$26.94 million	$2.18	13.04
Pioneer Bankshares	$20.97 million	2.05	$3.98 million	$3.98	10.68

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

Dividends

Mvb Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. Pioneer Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.6%. Mvb Financial pays out 31.2% 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. Pioneer Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Mvb Financial has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Pioneer Bankshares has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Insider & Institutional Ownership

52.7% of Mvb Financial shares are held by institutional investors. 9.9% of Mvb Financial shares are held by insiders. Comparatively, 13.7% of Pioneer Bankshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Mvb Financial beats Pioneer Bankshares on 10 of the 16 factors compared between the two stocks.

About Mvb Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West 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.