Head to Head Comparison: First National (OTCMKTS:FXNC) vs. Boston Private Financial (OTCMKTS:BPFH)

First National (OTCMKTS:FXNC) and Boston Private Financial (NASDAQ:BPFH) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares First National and Boston Private Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First National 25.15% 16.11% 1.34%
Boston Private Financial 15.45% 7.55% 0.70%

Dividends

First National pays an annual dividend of $0.44 per share and has a dividend yield of 3.2%. Boston Private Financial pays an annual dividend of $0.48 per share and has a dividend yield of 7.2%. Boston Private Financial pays out 50.0% of its earnings in the form of a dividend. Boston Private Financial has increased its dividend for 6 consecutive years. Boston Private Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

First National has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Boston Private Financial has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

6.2% of First National shares are held by institutional investors. Comparatively, 94.5% of Boston Private Financial shares are held by institutional investors. 10.9% of First National shares are held by company insiders. Comparatively, 0.8% of Boston Private Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares First National and Boston Private Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First National $40.29 million 1.72 $10.14 million N/A N/A
Boston Private Financial $409.99 million 1.33 $80.03 million $0.96 6.94

Boston Private Financial has higher revenue and earnings than First National.

Analyst Ratings

This is a summary of recent recommendations for First National and Boston Private Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First National 0 0 0 0 N/A
Boston Private Financial 0 3 0 0 2.00

Boston Private Financial has a consensus price target of $8.83, indicating a potential upside of 32.63%. Given Boston Private Financial’s higher possible upside, analysts clearly believe Boston Private Financial is more favorable than First National.

First National Company Profile

First National Corporation operates as the bank holding company for First Bank that provides a range of banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, individual retirement, certificates of deposit, and cash management accounts, as well as treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by various types of commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. The company's loan products also include commercial and industrial loans that are 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, automobile loans, deposit account loans, and installment and demand loans. In addition, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Further, the company offers title insurance and investment services; and holds other real estate owned and office sites. Additionally, it provides Internet banking, mobile banking, remote deposit capture, and other traditional banking services. The company operates through 15 bank branch offices, a loan production office, and a customer service center, as well as a network of ATMs. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.

Boston Private Financial Company Profile

Boston Private Financial Holdings, Inc. operates as the bank holding company for Boston Private Bank & Trust Company that provides a range of banking services in the United States. It operates in three segments: Private Banking, Wealth Management and Trust, and Affiliate Partners. The company accepts deposit products, such as checking accounts, savings and NOW accounts, money market accounts, and certificates of deposit. Its loan products include loans to individuals, such as residential mortgage loans, mortgage loans on investment or vacation properties, unsecured and secured personal lines of credits, home equity loans, and overdraft protection; and loans to businesses consisting of commercial and mortgage loans, revolving lines of credit, working capital loans, equipment financing, community lending programs, and construction and land loans. In addition, it provides wealth management solutions comprising customized investment solutions, wealth planning, trust, and family office services for high net worth individuals and families; services for pension funds, endowments, trusts, foundations and select institutions, mutual funds, and high net worth individuals and their families; and financial planning, tax planning and preparation, estate and insurance planning, retirement planning, charitable planning, and intergenerational gifting and succession planning. As of January 31, 2019, the company operated offices in Boston, New York, Los Angeles, San Francisco, San Jose, and Florida. Boston Private Financial Holdings, Inc. was founded in 1987 and is headquartered in Boston, Massachusetts.

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