National Bankshares (NASDAQ:NKSH – Get Free Report) and OptimumBank (NASDAQ:OPHC – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Profitability
This table compares National Bankshares and OptimumBank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Bankshares | 11.44% | 5.85% | 0.50% |
| OptimumBank | 19.62% | 14.10% | 1.31% |
Analyst Recommendations
This is a summary of current ratings and target prices for National Bankshares and OptimumBank, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Bankshares | 0 | 0 | 1 | 0 | 3.00 |
| OptimumBank | 0 | 1 | 0 | 0 | 2.00 |
Risk and Volatility
National Bankshares has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, OptimumBank has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Institutional & Insider Ownership
29.7% of National Bankshares shares are owned by institutional investors. Comparatively, 7.4% of OptimumBank shares are owned by institutional investors. 2.8% of National Bankshares shares are owned by company insiders. Comparatively, 13.9% of OptimumBank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares National Bankshares and OptimumBank”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Bankshares | $43.84 million | 4.53 | $15.69 million | $1.45 | 21.54 |
| OptimumBank | $39.23 million | 1.24 | $6.28 million | $1.32 | 3.65 |
National Bankshares has higher revenue and earnings than OptimumBank. OptimumBank is trading at a lower price-to-earnings ratio than National Bankshares, indicating that it is currently the more affordable of the two stocks.
Summary
National Bankshares beats OptimumBank on 10 of the 14 factors compared between the two stocks.
About National Bankshares
National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest-bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.
About OptimumBank
OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. It accepts demand interest-bearing and noninterest-bearing, savings, money market, and NOW accounts, as well as time deposits, wire transfers, ACH services, and certificates of deposit. The company also offers residential and commercial real estate, multi-family real estate, land and construction loans; commercial loans are generally used for working capital purposes or for acquiring equipment, inventory, and furniture; and consumer loans for various purposes, including purchases of automobiles, recreational vehicles, boats, home improvements, lines of credit, personal, and deposit account collateralized loans. In addition, it provides Visa debit and ATM cards; cash management, notary, and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, and banking by mail, as well as internet banking services. The company was founded in 2000 and is based in Fort Lauderdale, Florida.
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