Financial Comparison: Pioneer Bankshares (OTCMKTS:PNBI) vs. Virginia National Bankshares (NASDAQ:VABK)

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

Volatility & Risk

Pioneer Bankshares has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Pioneer Bankshares and Virginia National Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Bankshares	0	0	0	0	0.00
Virginia National Bankshares	0	1	0	0	2.00

Earnings and Valuation

This table compares Pioneer Bankshares and Virginia National Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Bankshares	$20.97 million	1.98	$3.98 million	$3.98	10.34
Virginia National Bankshares	$83.34 million	2.82	$19.26 million	$3.69	11.76

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

Insider and Institutional Ownership

37.4% of Virginia National Bankshares shares are owned by institutional investors. 13.7% of Pioneer Bankshares shares are owned by insiders. Comparatively, 14.0% of Virginia National Bankshares shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pioneer Bankshares	18.99%	N/A	N/A
Virginia National Bankshares	24.15%	11.15%	1.23%

Dividends

Pioneer Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.7%. Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. Pioneer Bankshares pays out 28.1% of its earnings in the form of a dividend. Virginia National Bankshares pays out 39.0% 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.

Summary

Virginia National Bankshares beats Pioneer Bankshares on 12 of the 14 factors compared between the two stocks.

About Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services to individual consumers, small to medium size businesses, and professional community in the United States. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise personal installment and single-pay, and auto loans; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction, as well as home mortgage and home equity loans. In addition, the company provides credit and debit cards, safe deposit boxes, online and mobile banking tools, merchant services, and cash management services. Further, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed, and variable annuities. Additionally, the company provides personalized investment advisory services, as well as securities and insurance products and services. Pioneer Bankshares, Inc. was founded in 1909 and is headquartered in Stanley, Virginia.

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.