Analyzing Virginia National Bankshares (VABK) and Its Peers

Virginia National Bankshares (NASDAQ:VABK) is one of 919 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Virginia National Bankshares to similar businesses based on the strength of its dividends, valuation, risk, profitability, earnings, analyst recommendations and institutional ownership.

Dividends

Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.8%. Virginia National Bankshares pays out 29.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Virginia National Bankshares lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Virginia National Bankshares and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Virginia National Bankshares	$83.34 million	$19.26 million	10.49
Virginia National Bankshares Competitors	$9.95 billion	$2.42 billion	17.38

Virginia National Bankshares’ rivals have higher revenue and earnings than Virginia National Bankshares. Virginia National Bankshares is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

37.4% of Virginia National Bankshares shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 14.4% of Virginia National Bankshares shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Virginia National Bankshares and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virginia National Bankshares	0	1	0	0	2.00
Virginia National Bankshares Competitors	7464	30192	27759	1465	2.35

As a group, “Banks” companies have a potential upside of 15.53%. Given Virginia National Bankshares’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Virginia National Bankshares has less favorable growth aspects than its rivals.

Risk and Volatility

Virginia National Bankshares has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Virginia National Bankshares’ rivals have a beta of 0.52, suggesting that their average share price is 48% less volatile than the S&P 500.

Profitability

This table compares Virginia National Bankshares and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virginia National Bankshares	29.92%	14.21%	1.63%
Virginia National Bankshares Competitors	15.66%	9.44%	0.93%

Summary

Virginia National Bankshares rivals beat Virginia National Bankshares on 11 of the 15 factors compared.

Virginia National Bankshares Company Profile

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.