Head-To-Head Survey: Prime Meridian (OTCMKTS:PMHG) versus Pinnacle Bankshares (OTCMKTS:PPBN)

Risk & Volatility

Pinnacle Bankshares has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Prime Meridian has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Earnings & Valuation

This table compares Pinnacle Bankshares and Prime Meridian”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle Bankshares	$55.62 million	1.79	$9.18 million	$4.84	9.24
Prime Meridian	$50.36 million	3.78	$8.49 million	$2.48	22.58

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

Profitability

This table compares Pinnacle Bankshares and Prime Meridian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bankshares	18.14%	12.94%	1.03%
Prime Meridian	15.49%	9.27%	0.87%

Dividends

Pinnacle Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. Prime Meridian pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Pinnacle Bankshares pays out 23.1% of its earnings in the form of a dividend. Prime Meridian pays out 40.3% 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. Pinnacle Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

3.8% of Pinnacle Bankshares shares are owned by institutional investors. Comparatively, 11.8% of Prime Meridian shares are owned by institutional investors. 6.5% of Pinnacle Bankshares shares are owned by company insiders. Comparatively, 25.9% of Prime Meridian shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Pinnacle Bankshares beats Prime Meridian on 9 of the 13 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 Prime Meridian

Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company accepts various deposits, such as checking, money market, savings, term certificate of deposit, demand interest-bearing and noninterest-bearing, health savings, NOW, and escrow accounts, as well as retirement savings plans and time deposits. Its loan products include commercial real estate, residential real estate and home equity, small business administration, construction, equipment, and commercial loans; and consumer and other loans comprising financing of automobiles, boats, and recreational vehicles, as well as issues standby letters and business lines of credit. The company also offers debit and credit cards; mobile banking, remote and mobile deposit, Apple Pay, bank-to-bank transfer, and online banking services; and safe deposit, wire transfer, foreign exchange, direct deposits, notary, night depository, official checks, domestic collections, bank drafts, automated teller services, drive-in tellers, merchant card, and banking by mail services, as well as invests in securities. Prime Meridian Holding Company was founded in 2008 and is headquartered in Tallahassee, Florida.