Head to Head Analysis: Pinnacle Bankshares (OTCMKTS:PPBN) & Fvcbankcorp (NASDAQ:FVCB)

Fvcbankcorp (NASDAQ:FVCB) and Pinnacle Bankshares (OTCMKTS:PPBN) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

43.6% of Fvcbankcorp shares are owned by institutional investors. Comparatively, 3.8% of Pinnacle Bankshares shares are owned by institutional investors. 10.9% of Fvcbankcorp shares are owned by insiders. Comparatively, 6.5% of Pinnacle Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Pinnacle Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. Fvcbankcorp pays out 20.7% of its earnings in the form of a dividend. Pinnacle Bankshares pays out 23.1% 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.

Volatility and Risk

Fvcbankcorp has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Pinnacle Bankshares has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Fvcbankcorp and Pinnacle Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fvcbankcorp	17.72%	8.73%	0.94%
Pinnacle Bankshares	18.14%	12.94%	1.03%

Analyst Recommendations

This is a summary of current recommendations and price targets for Fvcbankcorp and Pinnacle Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fvcbankcorp	0	2	1	0	2.33
Pinnacle Bankshares	0	0	0	0	0.00

Fvcbankcorp presently has a consensus price target of $16.00, indicating a potential upside of 15.11%. Given Fvcbankcorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Fvcbankcorp is more favorable than Pinnacle Bankshares.

Earnings and Valuation

This table compares Fvcbankcorp and Pinnacle Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fvcbankcorp	$115.85 million	2.17	$15.06 million	$1.16	11.98
Pinnacle Bankshares	$55.62 million	1.80	$9.18 million	$4.84	9.26

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

Summary

Fvcbankcorp beats Pinnacle Bankshares on 11 of the 16 factors compared between the two stocks.

About Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

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.