Green Bancorp (NASDAQ:GNBC) and National Bankshares (NASDAQ:NKSH) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Green Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. National Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 2.7%. Green Bancorp pays out 33.1% of its earnings in the form of a dividend. National Bankshares has increased its dividend for 16 consecutive years. National Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Green Bancorp and National Bankshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Green Bancorp||$190.76 million||3.85||$34.13 million||$1.21||16.25|
|National Bankshares||$51.64 million||5.88||$14.09 million||N/A||N/A|
Green Bancorp has higher revenue and earnings than National Bankshares.
This is a summary of current recommendations and price targets for Green Bancorp and National Bankshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Green Bancorp currently has a consensus price target of $26.67, indicating a potential upside of 35.64%. National Bankshares has a consensus price target of $48.00, indicating a potential upside of 10.12%. Given Green Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Green Bancorp is more favorable than National Bankshares.
Insider & Institutional Ownership
67.4% of Green Bancorp shares are held by institutional investors. Comparatively, 36.3% of National Bankshares shares are held by institutional investors. 14.0% of Green Bancorp shares are held by company insiders. Comparatively, 3.7% of National Bankshares shares are held 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.
Risk & Volatility
Green Bancorp has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.
This table compares Green Bancorp and National Bankshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Green Bancorp beats National Bankshares on 10 of the 16 factors compared between the two stocks.
About Green Bancorp
Green Bancorp, Inc. operates as the bank holding company for Green Bank, N.A. that provides commercial and private banking services primarily in Texas. It offers deposit accounts, such as demand, savings, money market, and time accounts. The company also provides loans, including commercial and industrial loans, including commercial lines of credit, working capital loans, commercial real estate-backed loans, mortgage-warehouse lines, term loans, equipment financing, borrowing base loans, real estate construction loans, homebuilder loans, government guaranteed loans, purchased receivables financing, letters of credit, and other loan products, as well as acquisition, expansion, and development loans to national and regional companies, real estate developers, mortgage lenders, manufacturing and industrial companies, and other businesses. In addition, it offers various consumer loans, such as residential real estate loans, home equity loans, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. Further, the company provides a range of online banking solutions, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and extended drive-through hours, and ATMs, as well as banking through telephone, mail, and personal appointment. Additionally, it offers debit cards, night depository services, direct deposits, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company provides its services through 22 full service branches in the greater Houston and Dallas metropolitan areas, as well as in Austin, Louisville, and Honey Grove. Green Bancorp, Inc. was founded in 1999 and is headquartered in Houston, Texas.
About National Bankshares
National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking 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 deposits, 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 merchant credit card services, and business and consumer debit and credit cards; letters of credit, night depository, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services for individual and business customers; non-deposit investment and insurance products; and telephone and Internet banking services. As of February 22, 2018, it operated 25 full service offices and a loan production office in Southwest Virginia. National Bankshares, Inc. was founded in 1891 and is headquartered in Blacksburg, Virginia.
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