Reviewing Guaranty Bancshares (NASDAQ:GNTY) and Park National (NYSE:PRK)

Park National (NYSE:PRK) and Guaranty Bancshares (NASDAQ:GNTY) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Institutional and Insider Ownership

62.7% of Park National shares are held by institutional investors. Comparatively, 39.4% of Guaranty Bancshares shares are held by institutional investors. 2.7% of Park National shares are held by company insiders. Comparatively, 22.3% of Guaranty Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Park National and Guaranty Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park National	23.46%	12.31%	1.50%
Guaranty Bancshares	17.15%	10.13%	1.02%

Dividends

Park National pays an annual dividend of $4.28 per share and has a dividend yield of 2.8%. Guaranty Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Park National pays out 41.6% of its earnings in the form of a dividend. Guaranty Bancshares pays out 31.8% 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. Park National has raised its dividend for 8 consecutive years and Guaranty Bancshares has raised its dividend for 8 consecutive years.

Volatility & Risk

Park National has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Earnings & Valuation

This table compares Park National and Guaranty Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park National	$543.45 million	4.59	$151.42 million	$10.29	15.07
Guaranty Bancshares	$123.09 million	4.50	$31.54 million	$3.14	15.52

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Park National and Guaranty Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park National	0	3	0	0	2.00
Guaranty Bancshares	0	1	1	0	2.50

Park National currently has a consensus target price of $177.75, indicating a potential upside of 14.62%. Guaranty Bancshares has a consensus target price of $45.00, indicating a potential downside of 7.66%. Given Park National’s higher possible upside, equities analysts clearly believe Park National is more favorable than Guaranty Bancshares.

Summary

Park National beats Guaranty Bancshares on 11 of the 16 factors compared between the two stocks.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.

About Guaranty Bancshares

Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. The company offers checking and savings, money market, and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland, agricultural, multi-family residential, and consumer loans. It also provides trustee, custodial and escrow, investment management, retirement plan, ATM, night depository, direct deposit, and cashier's check services, as well as online and mobile banking services; debit cards; letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. Guaranty Bancshares, Inc. was founded in 1913 and is headquartered in Addison, Texas.