Trading Bancshares (NASDAQ:CBSH) vs. First National (NASDAQ:FXNC) Financial Contrast


Commerce Bancactions (NASDAQ: CBSHGet a rating) and First National (NASDAQ: FXNCGet a rating) are both finance companies, but which stock is superior? We’ll compare the two companies based on their risk strength, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Benefits and evaluation

This table compares Commerce Bancshares and First National’s revenue, earnings per share and valuation.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Bancshares Trading $1.41 billion 6.14 $530.77 million $4.31 16.57
National premiere $47.32 million 2.77 $10.36 million $1.92 10.94

Commerce Bancshares has higher revenue and profit than First National. First National trades at a lower price-to-earnings ratio than Commerce Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Commerce Bancshares pays an annual dividend of $1.06 per share and has a dividend yield of 1.5%. First National pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Commerce Bancshares pays 24.6% of its profits as a dividend. First National pays 29.2% of its profits in the form of dividends. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Commerce Bancshares has increased its dividend for 1 consecutive year and First National has increased its dividend for 7 consecutive years. First National is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares the net margins, return on equity and return on assets of Commerce Bancshares and First National.

Net margins Return on equity return on assets
Bancshares Trading 37.68% 15.44% 1.53%
National premiere 21.89% 10.14% 0.86%

Risk and Volatility

Commerce Bancshares has a beta of 0.84, suggesting its stock price is 16% less volatile than the S&P 500. In comparison, First National has a beta of 0.52, suggesting its stock price is 48% less volatile than the S&P 500.

Institutional and insider ownership

64.0% of Commerce Bancshares shares are held by institutional investors. By comparison, 27.2% of First National’s shares are held by institutional investors. 3.2% of Commerce Bancshares shares are held by insiders. By comparison, 12.9% of First National’s shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Commerce Bancshares and First National, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Bancshares Trading 2 2 0 0 1.50
National premiere 0 1 0 0 2.00

Commerce Bancshares currently has a consensus price target of $69.47, suggesting a potential downside of 2.85%. First National has a consensus price target of $51.00, suggesting a potential upside of 142.86%. Given First National’s stronger consensus rating and higher likely upside, analysts clearly believe that First National is more favorable than Commerce Bancshares.

Summary

Commerce Bancshares beats First National on 11 out of 16 factors compared between the two stocks.

About Commerce Bancshares (Get a rating)

Commerce Bancshares, Inc. operates as a banking holding company for Commerce Bank which provides retail banking, mortgage banking, corporate, investment, trust and asset management products and services to individuals and to businesses in the United States. It operates through three segments: Consumer, Commercial and Wealth. The Consumer segment offers various banking products and services, including consumer deposits; consumer loans, such as automobile, motorcycle, marine, tractor/trailer, recreational vehicle, fixed rate and revolving, and other consumer loans; patient health care funding; real estate loans; indirect financing and other consumer financing; personal mortgage banking services; consumer installment loans; and consumer credit and debit cards. The Commercial segment provides business lending, leasing, international, business and commercial bank cards, securities custody and bond accounting services; and commercial products, government deposits and related commercial cash management services, as well as the sale of fixed income securities to correspondent banks, corporations, public institutions, municipalities and individuals. The Wealth segment offers traditional trust and estate planning, advisory and discretionary investment portfolio management, brokerage, and private banking accounts. The Company also offers private equity investment, securities brokerage, insurance agency, specialty lending and leasing services, as well as online and mobile banking. It operates through a network of 287 locations in Missouri, Kansas, Illinois, Oklahoma and Colorado, as well as sales offices. Commerce Bancshares, Inc. was founded in 1865 and is headquartered in Kansas City, Missouri.

About First National (Get a rating)

First National Corporation operates as a bank holding company for First Bank which provides various commercial banking services to small and medium-sized businesses, individuals, estates, local government entities, and nonprofit organizations in Virginia. The Company’s deposit products include individual checking, savings, money market and retirement accounts, as well as certificates of deposit and cash management solutions. Its lending products include construction loans, including residential, land acquisition and development loans; residential real estate loans for 1 to 4 families; and commercial real estate loans secured by commercial real estate, including multi-family residential buildings, office and retail properties, hotels, industrial buildings and religious facilities. The Company’s loan products also include commercial and industrial loans secured by business assets, such as accounts receivable, equipment and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, auto loans, deposit account loans, and installment and demand loans. Additionally, it provides wealth management services, including estate planning, asset investment management, trustee under agreement, trustee under will and estate settlement. In addition, the company offers title insurance and investment services; and owns other real estate sites and offices, as well as internet and mobile banking, remote deposit capture and other traditional banking services. It serves its customers through 20 bank branches, a loan origination office and a customer service center, as well as a network of ATMs. The company was founded in 1907 and is headquartered in Strasbourg, Virginia.



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