Parke Bancorp (NASDAQ:PKBK – Get Free Report) and National Bankshares (NASDAQ:NKSH – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Profitability
This table compares Parke Bancorp and National Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Parke Bancorp | 29.99% | 13.88% | 2.05% |
| National Bankshares | 23.22% | 10.66% | 1.09% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Parke Bancorp and National Bankshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Parke Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| National Bankshares | 0 | 0 | 1 | 1 | 3.50 |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Parke Bancorp | $90.62 million | 4.42 | $37.78 million | $3.84 | 8.86 |
| National Bankshares | $60.48 million | 4.42 | $15.83 million | $3.18 | 13.18 |
Parke Bancorp has higher revenue and earnings than National Bankshares. Parke Bancorp is trading at a lower price-to-earnings ratio than National Bankshares, indicating that it is currently the more affordable of the two stocks.
Dividends
Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. National Bankshares pays an annual dividend of $1.50 per share and has a dividend yield of 3.6%. Parke Bancorp pays out 20.8% of its earnings in the form of a dividend. National Bankshares pays out 47.2% 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.
Insider & Institutional Ownership
49.7% of Parke Bancorp shares are owned by institutional investors. Comparatively, 29.7% of National Bankshares shares are owned by institutional investors. 13.0% of Parke Bancorp shares are owned by company insiders. Comparatively, 3.3% of National Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Parke Bancorp has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
Summary
Parke Bancorp beats National Bankshares on 9 of the 15 factors compared between the two stocks.
About Parke Bancorp
Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.
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.
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