National Bankshares (NASDAQ:NKSH) vs. Bay National (OTCMKTS:BAYN) Financial Review

National Bankshares (NASDAQ:NKSH) and Bay National (OTCMKTS:BAYN) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares National Bankshares and Bay National’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%
Bay National	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bankshares	$68.19 million	2.66	$15.69 million	$2.26	13.61
Bay National	N/A	N/A	N/A	N/A	N/A

National Bankshares has higher revenue and earnings than Bay National.

Institutional and Insider Ownership

29.7% of National Bankshares shares are owned by institutional investors. 2.8% of National Bankshares shares are owned by insiders. Comparatively, 17.8% of Bay National shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

National Bankshares has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Bay National has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for National Bankshares and Bay National, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bankshares	0	0	0	0	N/A
Bay National	0	0	0	0	N/A

Summary

National Bankshares beats Bay National on 5 of the 7 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 Bay National

Bay National Corp. operates as a bank holding company. It offers loans, deposits, investments and other banking and financial services through its subsidiary, Bay National Bank. The company was founded in 1999 and is headquartered in Lutherville, MD.