Comparing Mid Penn Bancorp (NASDAQ:MPB) and Virginia National Bankshares (NASDAQ:VABK)

Mid Penn Bancorp (NASDAQ:MPB) and Virginia National Bankshares (NASDAQ:VABK) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mid Penn Bancorp and Virginia National Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	1	1	0	2.50
Virginia National Bankshares	0	0	1	0	3.00

Mid Penn Bancorp currently has a consensus target price of $37.00, indicating a potential upside of 17.46%. Given Mid Penn Bancorp’s higher possible upside, equities analysts clearly believe Mid Penn Bancorp is more favorable than Virginia National Bankshares.

Institutional and Insider Ownership

43.1% of Mid Penn Bancorp shares are owned by institutional investors. Comparatively, 37.4% of Virginia National Bankshares shares are owned by institutional investors. 8.1% of Mid Penn Bancorp shares are owned by insiders. Comparatively, 14.0% of Virginia National Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Mid Penn Bancorp has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares Mid Penn Bancorp and Virginia National Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	14.82%	8.25%	1.01%
Virginia National Bankshares	21.37%	10.58%	1.10%

Dividends

Mid Penn Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.6%. Mid Penn Bancorp pays out 36.1% of its earnings in the form of a dividend. Virginia National Bankshares pays out 43.6% 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.

Valuation and Earnings

This table compares Mid Penn Bancorp and Virginia National Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$309.08 million	2.35	$49.44 million	$2.44	12.91
Virginia National Bankshares	$83.52 million	2.59	$16.97 million	$3.30	12.18

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

Summary

Virginia National Bankshares beats Mid Penn Bancorp on 8 of the 15 factors compared between the two stocks.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.

About Virginia National Bankshares

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking services. The company operates through Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. In addition, the company offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. Further, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, and brokerage services. Additionally, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations in the Charlottesville/Albemarle County, Fauquier County, Manassas, Prince William County, Richmond, and Winchester market areas in Virginia. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.