Head-To-Head Comparison: First National (NASDAQ:FXNC) and Penns Woods Bancorp (NASDAQ:PWOD)

First National (NASDAQ:FXNCGet Rating) and Penns Woods Bancorp (NASDAQ:PWODGet Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Dividends

First National pays an annual dividend of $0.56 per share and has a dividend yield of 3.2%. Penns Woods Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 5.7%. First National pays out 28.9% of its earnings in the form of a dividend. Penns Woods Bancorp pays out 54.2% 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. First National has raised its dividend for 7 consecutive years.

Institutional and Insider Ownership

38.0% of First National shares are owned by institutional investors. Comparatively, 18.3% of Penns Woods Bancorp shares are owned by institutional investors. 12.9% of First National shares are owned by insiders. Comparatively, 4.8% of Penns Woods Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares First National and Penns Woods Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First National $47.32 million 2.34 $10.36 million $1.94 9.15
Penns Woods Bancorp $70.08 million 2.24 $16.03 million $2.36 9.44

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

Volatility and Risk

First National has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Penns Woods Bancorp has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First National and Penns Woods Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First National 0 0 0 0 N/A
Penns Woods Bancorp 0 0 0 0 N/A

Profitability

This table compares First National and Penns Woods Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First National 22.10% 10.70% 0.88%
Penns Woods Bancorp 23.96% 9.85% 0.87%

Summary

First National beats Penns Woods Bancorp on 8 of the 14 factors compared between the two stocks.

About First National

(Get Rating)

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. The company's loan products also include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. In addition, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Further, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. It serves customers through 20 bank branch offices, a loan production office, and a customer service center, as well as through a network of ATMs. The company was founded in 1907 and is headquartered in Strasburg, Virginia.

About Penns Woods Bancorp

(Get Rating)

Penns Woods Bancorp, Inc. operates as the bank holding company for Jersey Shore State Bank and Luzerne Bank, which provides commercial and retail banking services to individuals, partnerships, non-profit organizations, and corporations. It accepts time, demand, and savings deposits, including super NOW accounts, statement savings accounts, money market accounts, and certificates of deposit, as well as checking and individual retirement accounts. The company also offers loan products comprising residential, commercial, and construction real estate loans; agricultural loans for the purchase or improvement of real estate; commercial loans for the acquisition and improvement of real estate, purchase of equipment, and working capital purposes; letters of credit; consumer loans, such as construction and residential mortgages, home equity loans and lines, automobile financing, personal loans and lines of credit, and overdraft and check lines; and revolving credit loans with overdraft protection. In addition, it provides securities brokerage and financial planning services, which include the sale of life insurance products, annuities, and estate planning services; property and casualty, and auto insurance products; safe deposit services; ATM services; and Internet and telephone banking services. Further, the company engages in real estate transactions and investment activities. It operates through a network of twenty-seven offices located in Clinton, Lycoming, Centre, Montour, Union, Blair, and Luzerne Counties, Pennsylvania. The company was founded in 1907 and is headquartered in Williamsport, Pennsylvania.

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