Financial Review: Bancorp (NASDAQ:TBBK) versus Virginia National Bankshares (NASDAQ:VABK)

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

Volatility & Risk

Bancorp has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bancorp	30.97%	26.63%	2.69%
Virginia National Bankshares	18.95%	9.96%	0.97%

Institutional & Insider Ownership

96.2% of Bancorp shares are held by institutional investors. Comparatively, 37.4% of Virginia National Bankshares shares are held by institutional investors. 5.2% of Bancorp shares are held by company insiders. Comparatively, 13.9% of Virginia National Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Bancorp and Virginia National Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	0	0	3	0	3.00
Virginia National Bankshares	0	0	0	0	0.00

Bancorp presently has a consensus target price of $55.00, suggesting a potential downside of 0.31%. Given Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Bancorp is more favorable than Virginia National Bankshares.

Earnings and Valuation

This table compares Bancorp and Virginia National Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$621.60 million	4.25	$192.30 million	$3.96	13.93
Virginia National Bankshares	$79.09 million	2.87	$19.26 million	$2.89	14.60

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

Summary

Bancorp beats Virginia National Bankshares on 12 of the 14 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.

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.