National Bankshares (NASDAQ:NKSH – Get Free Report) and CVB Financial (NASDAQ:CVBF – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Dividends
National Bankshares pays an annual dividend of $1.50 per share and has a dividend yield of 3.5%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. National Bankshares pays out 47.2% of its earnings in the form of a dividend. CVB Financial pays out 55.2% 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 National Bankshares and CVB Financial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Bankshares | $85.32 million | 3.17 | $15.83 million | $3.18 | 13.35 |
| CVB Financial | $648.47 million | 5.97 | $209.30 million | $1.45 | 15.18 |
CVB Financial has higher revenue and earnings than National Bankshares. National Bankshares is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
29.7% of National Bankshares shares are held by institutional investors. Comparatively, 74.2% of CVB Financial shares are held by institutional investors. 3.3% of National Bankshares shares are held by company insiders. Comparatively, 6.4% of CVB Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
National Bankshares has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Profitability
This table compares National Bankshares and CVB Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Bankshares | 23.22% | 10.66% | 1.09% |
| CVB Financial | 29.02% | 9.21% | 1.36% |
Analyst Recommendations
This is a summary of current recommendations and price targets for National Bankshares and CVB Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Bankshares | 0 | 1 | 1 | 0 | 2.50 |
| CVB Financial | 0 | 1 | 4 | 0 | 2.80 |
CVB Financial has a consensus price target of $26.25, indicating a potential upside of 19.26%. Given CVB Financial’s stronger consensus rating and higher probable upside, analysts clearly believe CVB Financial is more favorable than National Bankshares.
Summary
CVB Financial beats National Bankshares on 13 of the 16 factors compared between the two stocks.
About National Bankshares
National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest-bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.
About CVB Financial
CVB Financial Corp. operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals. It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers. The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit. In addition, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access. Further, the company provides trust services, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.
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