Critical Survey: NBT Bancorp (NASDAQ:NBTB) vs. Virginia National Bankshares (NASDAQ:VABK)

NBT Bancorp (NASDAQ:NBTB) and Virginia National Bankshares (NASDAQ:VABK) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

NBT Bancorp has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for NBT Bancorp and Virginia National Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NBT Bancorp	0	3	1	1	2.60
Virginia National Bankshares	0	0	0	0	0.00

NBT Bancorp currently has a consensus price target of $54.50, indicating a potential upside of 27.69%. Given NBT Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe NBT Bancorp is more favorable than Virginia National Bankshares.

Valuation and Earnings

This table compares NBT Bancorp and Virginia National Bankshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NBT Bancorp	$574.44 million	3.51	$140.64 million	$2.96	14.42
Virginia National Bankshares	$53.06 million	3.68	$16.97 million	$3.15	11.54

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

Dividends

NBT Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 3.2%. Virginia National Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.6%. NBT Bancorp pays out 45.9% of its earnings in the form of a dividend. Virginia National Bankshares pays out 41.9% 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. NBT Bancorp has increased its dividend for 12 consecutive years. Virginia National Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares NBT Bancorp and Virginia National Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NBT Bancorp	17.84%	9.39%	1.02%
Virginia National Bankshares	20.32%	10.77%	1.06%

Insider & Institutional Ownership

58.5% of NBT Bancorp shares are owned by institutional investors. Comparatively, 37.4% of Virginia National Bankshares shares are owned by institutional investors. 3.3% of NBT Bancorp shares are owned by insiders. Comparatively, 13.9% of Virginia 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.

Summary

NBT Bancorp beats Virginia National Bankshares on 10 of the 18 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 Virginia National Bankshares

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking services. The company operates through Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. In addition, the company offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. Further, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, and brokerage services. Additionally, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations in the Charlottesville/Albemarle County, Fauquier County, Manassas, Prince William County, Richmond, and Winchester market areas in Virginia. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.