Critical Contrast: First of Long Island (NASDAQ:FLIC) versus National Bankshares (NASDAQ:NKSH)

First of Long Island (NASDAQ:FLIC – Get Rating) and National Bankshares (NASDAQ:NKSH – Get Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares First of Long Island and National Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First of Long Island	28.08%	11.24%	0.97%
National Bankshares	39.10%	20.37%	1.51%

Valuation and Earnings

This table compares First of Long Island and National Bankshares’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First of Long Island	$146.63 million	1.70	$46.93 million	$1.82	6.07
National Bankshares	$62.51 million	2.53	$25.93 million	N/A	N/A

First of Long Island has higher revenue and earnings than National Bankshares.

Volatility & Risk

First of Long Island has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Insider and Institutional Ownership

57.0% of First of Long Island shares are owned by institutional investors. Comparatively, 23.4% of National Bankshares shares are owned by institutional investors. 6.3% of First of Long Island shares are owned by insiders. Comparatively, 2.8% of National Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

First of Long Island pays an annual dividend of $0.84 per share and has a dividend yield of 7.6%. National Bankshares pays an annual dividend of $1.46 per share and has a dividend yield of 5.4%. First of Long Island pays out 46.2% of its earnings in the form of a dividend. First of Long Island has increased its dividend for 26 consecutive years. First of Long Island is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for First of Long Island and National Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First of Long Island	0	1	0	0	2.00
National Bankshares	0	1	0	0	2.00

First of Long Island currently has a consensus price target of $16.50, suggesting a potential upside of 49.32%. National Bankshares has a consensus price target of $37.50, suggesting a potential upside of 39.41%. Given First of Long Island’s higher probable upside, research analysts clearly believe First of Long Island is more favorable than National Bankshares.

Summary

First of Long Island beats National Bankshares on 8 of the 13 factors compared between the two stocks.

About First of Long Island

(Get Rating)

The First of Long Island Corp. is a holding company, through which its subsidiaries, engages in the provision of financial services. It offers personal banking, business banking and lending services to individual, professional, corporate, institutional, and government customers. The company was founded on February 7, 1984 and is headquartered in Glen Head, NY.

About National Bankshares

(Get Rating)

National Bankshares, Inc. is a community bank holding company. It offers financial products and services, including deposit accounts, commercial, consumer and mortgage loans, credit cards and trust services throughout Southwest Virginia. National Bankshares was founded in 1986 and is headquartered in Blacksburg, VA.