Patriot National Bancorp (NASDAQ: PNBK) and First Financial Bankshares (NASDAQ:FFIN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Dividends

Patriot National Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 1.9%. Patriot National Bancorp pays out 3.5% of its earnings in the form of a dividend. First Financial Bankshares pays out 46.9% 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.

Profitability

This table compares Patriot National Bancorp and First Financial Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patriot National Bancorp 14.87% 6.95% 0.60%
First Financial Bankshares 33.03% 12.41% 1.57%

Risk & Volatility

Patriot National Bancorp has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, First Financial Bankshares has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Patriot National Bancorp and First Financial Bankshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patriot National Bancorp 0 0 0 0 N/A
First Financial Bankshares 0 4 0 0 2.00

First Financial Bankshares has a consensus target price of $40.25, indicating a potential downside of 0.25%. Given First Financial Bankshares’ higher possible upside, analysts plainly believe First Financial Bankshares is more favorable than Patriot National Bancorp.

Valuation and Earnings

This table compares Patriot National Bancorp and First Financial Bankshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Patriot National Bancorp $25.83 million 2.50 $4.33 million $1.13 14.96
First Financial Bankshares $308.20 million 8.60 $106.38 million $1.62 24.91

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

Institutional & Insider Ownership

2.0% of Patriot National Bancorp shares are held by institutional investors. Comparatively, 49.9% of First Financial Bankshares shares are held by institutional investors. 81.5% of Patriot National Bancorp shares are held by insiders. Comparatively, 5.0% of First Financial Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

First Financial Bankshares beats Patriot National Bancorp on 12 of the 14 factors compared between the two stocks.

Patriot National Bancorp Company Profile

Patriot National Bancorp, Inc. is a one-bank holding company for Patriot Bank, N.A. (the Bank), a national banking association. The Bank offers consumer and commercial deposit accounts, such as checking, interest-bearing negotiable order of withdrawal (NOW) account, money market, time certificates of deposit, savings, Certificate of Deposit Account Registry Service (CDARS), individual retirement accounts (IRAs) and health savings accounts (HSAs). The Bank’s other services include automated clearing house (ACH) transfers, lockbox, Internet banking, bill paying, remote deposit capture, debit cards, money orders, traveler’s checks and automated teller machines (ATMs). The Bank offers commercial real estate loans, commercial business loans and various consumer loans to individuals, small and medium-sized businesses, and professionals. Its commercial and industrial loan portfolio consists of commercial business loans and lines of credit to businesses and professionals.

First Financial Bankshares Company Profile

First Financial Bankshares, Inc. is a financial holding company. The Company, through its subsidiaries, conducts commercial banking business. As of December 31, 2016, the Company’s subsidiaries included First Financial Bank, National Association, Abilene, Texas; First Technology Services, Inc., Abilene, Texas; First Financial Trust & Asset Management Company, National Association, Abilene, Texas; First Financial Investments, Inc., Abilene, Texas, and First Financial Insurance Agency, Inc., Abilene, Texas. Its banking centers are located in Central, North Central, Southeast and West Texas. Its loan portfolio consists of loans made to businesses, professionals, individuals, and farm and ranch operations located in the primary trade areas served by its subsidiary bank. Its securities available-for-sale include the United States Treasury securities, Obligations of the United States Government sponsored enterprises and agencies and Obligations of states and political subdivisions.

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