Comparing Pinnacle Bankshares (OTCMKTS:PPBN) & Fifth District Bancorp (NASDAQ:FDSB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bankshares	18.14%	13.19%	1.03%
Fifth District Bancorp	14.27%	2.88%	0.69%

Earnings and Valuation

This table compares Pinnacle Bankshares and Fifth District Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle Bankshares	$55.62 million	1.68	$9.18 million	$4.84	8.68
Fifth District Bancorp	$19.29 million	3.95	-$1.08 million	$0.73	18.93

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

Volatility and Risk

Pinnacle Bankshares has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Fifth District Bancorp has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Pinnacle Bankshares and Fifth District Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinnacle Bankshares	0	0	0	0	0.00
Fifth District Bancorp	1	0	0	0	1.00

Insider and Institutional Ownership

3.8% of Pinnacle Bankshares shares are owned by institutional investors. 6.5% of Pinnacle Bankshares shares are owned by insiders. Comparatively, 4.5% of Fifth District Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Pinnacle Bankshares beats Fifth District Bancorp on 8 of the 12 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 Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.