National Bankshares (NASDAQ:NKSH) & LCNB (NASDAQ:LCNB) Head to Head Review

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

Valuation & Earnings

This table compares National Bankshares and LCNB’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bankshares	$43.94 million	3.79	$15.69 million	$2.26	12.51
LCNB	$95.01 million	2.07	$12.63 million	$0.92	15.12

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

Profitability

This table compares National Bankshares and LCNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Bankshares	19.00%	10.17%	0.81%
LCNB	10.16%	7.31%	0.75%

Analyst Recommendations

This is a breakdown of current ratings and price targets for National Bankshares and LCNB, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bankshares	0	1	0	0	2.00
LCNB	0	0	0	0	N/A

National Bankshares currently has a consensus price target of $31.00, suggesting a potential upside of 9.62%. Given National Bankshares’ higher probable upside, equities analysts clearly believe National Bankshares is more favorable than LCNB.

Insider and Institutional Ownership

29.7% of National Bankshares shares are owned by institutional investors. Comparatively, 34.7% of LCNB shares are owned by institutional investors. 2.8% of National Bankshares shares are owned by insiders. Comparatively, 5.8% of LCNB shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

National Bankshares pays an annual dividend of $1.46 per share and has a dividend yield of 5.2%. LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 6.3%. National Bankshares pays out 64.6% of its earnings in the form of a dividend. LCNB pays out 95.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

National Bankshares has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, LCNB has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Summary

National Bankshares beats LCNB on 8 of the 14 factors compared between the two stocks.

About National Bankshares

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest-bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.