Pinnacle Bankshares (OTCMKTS:PPBN – Get Free Report) and Stock Yards Bancorp (NASDAQ:SYBT – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Profitability
This table compares Pinnacle Bankshares and Stock Yards Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pinnacle Bankshares | 18.14% | 12.94% | 1.03% |
| Stock Yards Bancorp | 24.50% | 13.65% | 1.49% |
Analyst Recommendations
This is a summary of current ratings and target prices for Pinnacle Bankshares and Stock Yards Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pinnacle Bankshares | 0 | 0 | 0 | 0 | 0.00 |
| Stock Yards Bancorp | 0 | 4 | 0 | 0 | 2.00 |
Institutional & Insider Ownership
3.8% of Pinnacle Bankshares shares are owned by institutional investors. Comparatively, 56.5% of Stock Yards Bancorp shares are owned by institutional investors. 6.5% of Pinnacle Bankshares shares are owned by company insiders. Comparatively, 3.4% of Stock Yards Bancorp shares are owned by company 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.
Risk and Volatility
Pinnacle Bankshares has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Stock Yards Bancorp has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.
Valuation and Earnings
This table compares Pinnacle Bankshares and Stock Yards Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pinnacle Bankshares | $55.62 million | 1.76 | $9.18 million | $4.84 | 9.09 |
| Stock Yards Bancorp | $508.11 million | 3.94 | $114.54 million | $4.58 | 14.84 |
Stock Yards Bancorp has higher revenue and earnings than Pinnacle Bankshares. Pinnacle Bankshares is trading at a lower price-to-earnings ratio than Stock Yards Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Pinnacle Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. Stock Yards Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 1.9%. Pinnacle Bankshares pays out 23.1% of its earnings in the form of a dividend. Stock Yards Bancorp pays out 27.9% 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. Stock Yards Bancorp has increased its dividend for 15 consecutive years. Pinnacle Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Stock Yards Bancorp beats Pinnacle Bankshares on 12 of the 16 factors compared between the two stocks.
About Pinnacle Bankshares
Pinnacle Bankshares Corporation operates as the bank holding company for First National Bank that provides a range of commercial and retail banking products and services. The company accepts checking accounts, savings and time deposits, individual retirement accounts, certificates of deposit, and money market accounts. Its loan products include residential and commercial mortgage loans, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial lines of credit, and letters of credit. The company also provides credit cards; insurance products, including property and casualty, life, and health; investment and annuity products; and overdraft protection, merchant bankcard processing, cash management, remote deposit capture, night drop, safe deposit boxes, and notary services, as well as telephone, mobile, and online banking services. It operates branches in Amherst County, Bedford County, Campbell County, Pittsylvania County; and the city of Danville, Lynchburg and Charlottesville. The company was founded in 1908 and is headquartered in Altavista, Virginia.
About Stock Yards Bancorp
Stock Yards Bancorp, Inc. operates as a holding company for Stock Yards Bank & Trust Company that provides various financial services for individuals, corporations, and others in the United States. It operates in two segments, Commercial Banking, and WM&T. The Commercial Banking segment offers a range of loan and deposit products to individual consumers and businesses in all its markets through retail lending, mortgage banking, deposit services, online banking, mobile banking, private banking, commercial lending, commercial real estate lending, leasing, treasury management services, merchant services, international banking, correspondent banking, and other banking services. This segment also provides securities brokerage services through an arrangement with a third party broker-dealer. The WM&T segment provides investment management, financial and retirement planning, and trust and estate services, as well as retirement plan management for businesses and corporations. It provides services in Louisville, central, eastern, and northern Kentucky, as well as Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets. The company was founded in 1904 and is headquartered in Louisville, Kentucky.
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