Financial Survey: Bank7 (NASDAQ:BSVN) vs. Bank of the James Financial Group (NASDAQ:BOTJ)

Bank7 (NASDAQ:BSVN) and Bank of the James Financial Group (NASDAQ:BOTJ) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Bank7 has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Bank of the James Financial Group has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares Bank7 and Bank of the James Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank7	31.60%	19.11%	2.39%
Bank of the James Financial Group	12.85%	11.23%	0.79%

Earnings and Valuation

This table compares Bank7 and Bank of the James Financial Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank7	$142.79 million	2.82	$45.70 million	$4.53	9.41
Bank of the James Financial Group	$59.78 million	N/A	$7.94 million	$1.76	10.30

Bank7 has higher revenue and earnings than Bank of the James Financial Group. Bank7 is trading at a lower price-to-earnings ratio than Bank of the James Financial Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

23.5% of Bank7 shares are owned by institutional investors. Comparatively, 18.5% of Bank of the James Financial Group shares are owned by institutional investors. 41.9% of Bank7 shares are owned by insiders. Comparatively, 15.4% of Bank of the James Financial Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Bank7 pays an annual dividend of $1.08 per share and has a dividend yield of 2.5%. Bank of the James Financial Group pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Bank7 pays out 23.8% of its earnings in the form of a dividend. Bank of the James Financial Group pays out 22.7% 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. Bank7 has increased its dividend for 5 consecutive years and Bank of the James Financial Group has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bank7 and Bank of the James Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank7	0	1	3	0	2.75
Bank of the James Financial Group	0	1	0	0	2.00

Bank7 currently has a consensus price target of $54.00, suggesting a potential upside of 26.73%. Given Bank7’s stronger consensus rating and higher possible upside, analysts plainly believe Bank7 is more favorable than Bank of the James Financial Group.

Summary

Bank7 beats Bank of the James Financial Group on 13 of the 15 factors compared between the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

About Bank of the James Financial Group

Bank of the James Financial Group, Inc. operates as the bank holding company for Bank of the James that provides general retail and commercial banking services to individuals, businesses, associations and organizations, and governmental authorities in Virginia, the United States. It offers checking, savings, individual retirement, and health care saving accounts, as well as other time deposits, including money market accounts and certificates of deposit. The company also provides loans to small- and medium-sized businesses for the purchases of equipment, facilities upgrades, inventory acquisition, and various working capital purposes; commercial and residential construction and development loans; commercial real estate mortgage loans; residential mortgage loans; and secured and unsecured consumer loans, such as lines of credit and overdraft lines of credit, as well as personal, automobile, installment, demand, and home equity loans for personal, family, or household purposes. In addition, it offers other banking services, including safe deposit boxes, traveler's checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, treasury management, and credit card merchant services. Further, the company provides mortgage banking; investment advisory services; securities brokerage and investment services; and telephone and internet banking services comprising online bill pay, as well as acts as an agent for insurance and annuity products. The company was founded in 1999 and is headquartered in Lynchburg, Virginia.