Investors are evaluating the comparative strengths of two small-cap finance companies: Madison County Financial and National Bankshares. This analysis considers factors such as dividends, valuation, institutional ownership, and profitability to determine which stock may offer greater potential.
Valuation and Earnings
Both companies present distinct financial profiles. Madison County Financial reports an annual dividend of $0.36 per share, yielding 1.3%. In contrast, National Bankshares provides a more substantial dividend of $1.56 per share, resulting in a yield of 4.3%. However, National Bankshares distributes approximately 76.5% of its earnings as dividends, raising concerns about sustainability if earnings do not keep pace.
Profitability
A closer examination of profitability metrics highlights differences between the two firms. While specific net margins and returns on equity and assets were not detailed in the initial comparison, these factors are crucial for investors seeking long-term growth.
Ownership Structure
Institutional ownership can indicate a company’s growth prospects. 29.7% of National Bankshares shares are held by institutional investors, reflecting confidence among large money managers. In contrast, Madison County Financial has 16.9% of its shares held by insiders, while only 3.2% of National Bankshares shares are owned by insiders.
Analyst Recommendations
Analyst insights play a vital role in guiding investment decisions. A breakdown of current recommendations and price targets for both companies, as sourced from MarketBeat, is essential for understanding market sentiment.
Risk and Volatility
Risk assessments reveal varying levels of volatility. Madison County Financial has a beta of 0.12, indicating that its share price is 88% less volatile than that of the S&P 500. Conversely, National Bankshares has a beta of 0.72, suggesting its stock is 28% less volatile compared to the broader market.
Summary
In summary, National Bankshares outperforms Madison County Financial across 10 of the 12 evaluated factors. Investors seeking robust dividends and institutional backing may find National Bankshares to be the more compelling option.
About Madison County Financial
Founded in 1888, Madison County Financial, Inc. serves as the holding company for Madison County Bank, providing a range of banking and financial services to individuals and corporations in Nebraska. Its offerings include various types of accounts, loans, and online banking services. The company rebranded from Madison County Holding Company in October 2012.
About National Bankshares
Established in 1891, National Bankshares, Inc. operates as the holding company for the National Bank of Blacksburg, which delivers retail and commercial banking services in Virginia. The bank offers a wide array of financial products, including deposit accounts, loans, and wealth management services.
For investors monitoring these institutions, the differences in dividends, ownership, and risk profiles are critical factors in making informed decisions.
