Contrasting First National Bank Alaska (OTCMKTS:FBAK) & Oak Valley Bancorp (NASDAQ:OVLY)

First National Bank Alaska (OTCMKTS:FBAK) and Oak Valley Bancorp (NASDAQ:OVLY) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional & Insider Ownership

30.9% of Oak Valley Bancorp shares are owned by institutional investors. 18.1% of Oak Valley Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

First National Bank Alaska has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Oak Valley Bancorp has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.1%. Oak Valley Bancorp pays an annual dividend of $0.75 per share and has a dividend yield of 2.2%. First National Bank Alaska pays out 65.4% of its earnings in the form of a dividend. Oak Valley Bancorp pays out 26.0% 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. Oak Valley Bancorp has increased its dividend for 11 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for First National Bank Alaska and Oak Valley Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Bank Alaska	0	0	0	0	0.00
Oak Valley Bancorp	0	0	1	0	3.00

Profitability

This table compares First National Bank Alaska and Oak Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	29.19%	14.98%	1.55%
Oak Valley Bancorp	25.16%	12.33%	1.22%

Earnings & Valuation

This table compares First National Bank Alaska and Oak Valley Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$265.67 million	3.71	$77.54 million	$24.48	12.70
Oak Valley Bancorp	$81.73 million	3.53	$23.91 million	$2.88	11.90

First National Bank Alaska has higher revenue and earnings than Oak Valley Bancorp. Oak Valley Bancorp is trading at a lower price-to-earnings ratio than First National Bank Alaska, indicating that it is currently the more affordable of the two stocks.

Summary

First National Bank Alaska beats Oak Valley Bancorp on 9 of the 16 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

About Oak Valley Bancorp

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including automobile loans, home mortgages, credit lines, and other personal loans. In addition, the company provides online and mobile banking, remote deposit capture, merchant, night depository, extended hours, wire transfer of funds, note collection services, and automated teller machines. The company was incorporated in 1990 and is headquartered in Oakdale, California.