Reviewing Virginia National Bankshares (NASDAQ:VABK) and American Bank (OTCMKTS:AMBK)

American Bank (OTCMKTS:AMBK) and Virginia National Bankshares (NASDAQ:VABK) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Risk & Volatility

American Bank has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.

Insider and Institutional Ownership

37.4% of Virginia National Bankshares shares are owned by institutional investors. 12.6% of Virginia National Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Bank	N/A	N/A	N/A
Virginia National Bankshares	19.25%	10.50%	0.98%

Dividends

American Bank pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Virginia National Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.5%. Virginia National Bankshares pays out 41.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Bank and Virginia National Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Bank	0	0	0	0	N/A
Virginia National Bankshares	0	0	0	0	N/A

Valuation and Earnings

This table compares American Bank and Virginia National Bankshares’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Bank	N/A	N/A	N/A	N/A	N/A
Virginia National Bankshares	$52.24 million	3.89	$19.26 million	$3.18	11.88

Virginia National Bankshares has higher revenue and earnings than American Bank.

Summary

Virginia National Bankshares beats American Bank on 7 of the 9 factors compared between the two stocks.

About American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.

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.