Critical Review: NBT Bancorp (NASDAQ:NBTB) & First National of Nebraska (OTCMKTS:FINN)

NBT Bancorp (NASDAQ:NBTB) and First National of Nebraska (OTCMKTS:FINN) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Dividends

NBT Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 2.8%. First National of Nebraska pays an annual dividend of $120.00 per share and has a dividend yield of 1.0%. NBT Bancorp pays out 52.5% of its earnings in the form of a dividend. NBT Bancorp has raised its dividend for 12 consecutive years. NBT Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

NBT Bancorp has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, First National of Nebraska has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Institutional & Insider Ownership

58.5% of NBT Bancorp shares are held by institutional investors. Comparatively, 0.7% of First National of Nebraska shares are held by institutional investors. 3.3% of NBT Bancorp shares are held by company insiders. Comparatively, 41.7% of First National of Nebraska shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for NBT Bancorp and First National of Nebraska, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NBT Bancorp	0	3	2	0	2.40
First National of Nebraska	0	0	0	0	N/A

NBT Bancorp currently has a consensus target price of $42.60, suggesting a potential downside of 13.20%. Given NBT Bancorp’s higher probable upside, equities research analysts clearly believe NBT Bancorp is more favorable than First National of Nebraska.

Profitability

This table compares NBT Bancorp and First National of Nebraska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NBT Bancorp	16.15%	9.64%	1.01%
First National of Nebraska	N/A	N/A	N/A

Earnings and Valuation

This table compares NBT Bancorp and First National of Nebraska’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NBT Bancorp	$551.42 million	4.19	$118.78 million	$2.59	18.91
First National of Nebraska	N/A	N/A	N/A	N/A	N/A

NBT Bancorp has higher revenue and earnings than First National of Nebraska.

Summary

NBT Bancorp beats First National of Nebraska on 10 of the 12 factors compared between the two stocks.

About NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.

About First National of Nebraska

First National of Nebraska, Inc. operates as the bank holding company for First National Bank of Omaha that provides various banking products and services. The company offers checking, savings, and individual retirement accounts; certificates of deposit; and credit cards. It also provides personal loans and lines of credit; auto loans; mortgage loans; home equity lines of credit and loans; small business loans and lines of credit; small business administration loans; and commercial lending solutions. In addition, the company offers treasury management, debt consolidation, financial planning, retirement planning, wealth management, merchant, and payroll services; and personal, commercial, and farm insurance products. Further, it provides solutions for agribusiness, commercial real estate, healthcare, transportation, and correspondent banking; investment services, such as capital market and institutional asset management; and digital banking services. First National of Nebraska, Inc. was founded in 1857 and is headquartered in Omaha, Nebraska.