First Interstate BancSystem (NASDAQ:FIBK) versus Virginia National Bankshares (NASDAQ:VABK) Financial Review

First Interstate BancSystem (NASDAQ:FIBK) and Virginia National Bankshares (NASDAQ:VABK) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares First Interstate BancSystem and Virginia National Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Interstate BancSystem	$1.05 billion	3.40	$302.10 million	$3.25	11.53
Virginia National Bankshares	$83.34 million	3.06	$19.26 million	$4.56	10.30

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

Analyst Recommendations

This is a summary of current recommendations and price targets for First Interstate BancSystem and Virginia National Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Interstate BancSystem	3	3	2	0	1.88
Virginia National Bankshares	0	1	0	0	2.00

First Interstate BancSystem presently has a consensus price target of $36.83, indicating a potential downside of 1.73%. Given First Interstate BancSystem’s higher probable upside, research analysts plainly believe First Interstate BancSystem is more favorable than Virginia National Bankshares.

Volatility and Risk

First Interstate BancSystem has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Insider and Institutional Ownership

88.7% of First Interstate BancSystem shares are owned by institutional investors. Comparatively, 37.4% of Virginia National Bankshares shares are owned by institutional investors. 8.0% of First Interstate BancSystem shares are owned by insiders. Comparatively, 14.4% 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 company is poised for long-term growth.

Dividends

First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 5.0%. Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.1%. First Interstate BancSystem pays out 57.8% of its earnings in the form of a dividend. Virginia National Bankshares pays out 31.6% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Interstate BancSystem	23.63%	9.55%	1.22%
Virginia National Bankshares	28.18%	13.36%	1.52%

Summary

First Interstate BancSystem beats Virginia National Bankshares on 9 of the 16 factors compared between the two stocks.

About First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.

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.