Analyzing Virginia National Bankshares (NASDAQ:VABK) & Pinnacle Financial Partners (NASDAQ:PNFP)

Virginia National Bankshares (NASDAQ:VABK) and Pinnacle Financial Partners (NASDAQ:PNFP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk & Volatility

Virginia National Bankshares has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Pinnacle Financial Partners has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Dividends

Virginia National Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.1%. Pinnacle Financial Partners pays an annual dividend of $0.88 per share and has a dividend yield of 0.7%. Virginia National Bankshares pays out 45.7% of its earnings in the form of a dividend. Pinnacle Financial Partners pays out 16.7% 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 and Institutional Ownership

37.4% of Virginia National Bankshares shares are held by institutional investors. Comparatively, 87.4% of Pinnacle Financial Partners shares are held by institutional investors. 13.9% of Virginia National Bankshares shares are held by insiders. Comparatively, 1.9% of Pinnacle Financial Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Virginia National Bankshares and Pinnacle Financial Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virginia National Bankshares	18.95%	9.96%	0.97%
Pinnacle Financial Partners	13.97%	8.89%	1.07%

Valuation & Earnings

This table compares Virginia National Bankshares and Pinnacle Financial Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virginia National Bankshares	$79.09 million	2.87	$19.26 million	$2.89	14.64
Pinnacle Financial Partners	$2.79 billion	3.26	$562.15 million	$5.26	22.38

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

Analyst Ratings

This is a summary of current ratings and price targets for Virginia National Bankshares and Pinnacle Financial Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virginia National Bankshares	0	0	0	0	0.00
Pinnacle Financial Partners	0	7	4	0	2.36

Pinnacle Financial Partners has a consensus target price of $113.64, suggesting a potential downside of 3.45%. Given Pinnacle Financial Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Pinnacle Financial Partners is more favorable than Virginia National Bankshares.

Summary

Pinnacle Financial Partners beats Virginia National Bankshares on 12 of the 16 factors compared between the two stocks.

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.

About Pinnacle Financial Partners

Pinnacle Financial Partners, Inc., together with its subsidiaries, operates as the bank holding company for Pinnacle Bank that provides various banking products and services to individuals, businesses, and professional entities in the United States. The company accepts various deposits, including savings, noninterest-bearing and interest-bearing checking, money market, and certificate of deposit accounts; and provides treasury management services, which includes online wire origination, enhanced ACH origination services, positive pay, zero balance and sweep accounts, automated bill pay services, electronic receivables processing, lockbox processing, and merchant card acceptance services. It offers equipment and working capital loans; commercial real estate loans comprising investment properties and business loans; secured and unsecured loans, such as installment and term, lines of credit, and residential first mortgage, as well as home equity loans and home equity lines of credit; and credit cards for consumers and businesses. The company also provides investment products; brokerage and investment advisory programs; and fiduciary and investment services, such as personal trust, investment management, estate administration, endowments, foundations, individual retirement accounts, escrow services, and custody. In addition, it offers insurance agency services primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, and other middle-market advisory services. Further, the company provides telephone and online banking, mobile banking, debit and credit cards, direct deposit and remote deposit capture, mobile deposit option, automated teller machine, and cash management services. Pinnacle Financial Partners, Inc. was incorporated in 2000 and is headquartered in Nashville, Tennessee.