National Bankshares (NASDAQ:NKSH) vs. Alerus Financial (NASDAQ:ALRS) Head to Head Contrast

National Bankshares (NASDAQ:NKSHGet Rating) and Alerus Financial (NASDAQ:ALRSGet Rating) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

National Bankshares has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Alerus Financial has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Valuation and Earnings

This table compares National Bankshares and Alerus Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Bankshares $53.41 million 3.97 $20.38 million N/A N/A
Alerus Financial $240.04 million 1.91 $52.68 million $2.98 8.85

Alerus Financial has higher revenue and earnings than National Bankshares.

Dividends

National Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 4.2%. Alerus Financial pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Alerus Financial pays out 21.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for National Bankshares and Alerus Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Bankshares 0 0 0 0 N/A
Alerus Financial 0 0 0 0 N/A

Profitability

This table compares National Bankshares and Alerus Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Bankshares 38.16% 10.69% 1.24%
Alerus Financial 21.95% 15.20% 1.64%

Institutional and Insider Ownership

24.8% of National Bankshares shares are held by institutional investors. Comparatively, 36.1% of Alerus Financial shares are held by institutional investors. 2.8% of National Bankshares shares are held by insiders. Comparatively, 6.9% of Alerus Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Alerus Financial beats National Bankshares on 7 of the 11 factors compared between the two stocks.

National Bankshares Company Profile (Get Rating)

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. It operates 23 branch offices, a loan production office, and 22 automated teller machines in Southwest Virginia. National Bankshares, Inc. was founded in 1891 and is headquartered in Blacksburg, Virginia.

Alerus Financial Company Profile (Get Rating)

Alerus Financial Corporation, through its subsidiary, Alerus Financial, National Association, provides various financial services to businesses and consumers. The company operates in four segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. It offers banking services through fourteen offices in North Dakota, Minnesota, and Arizona; and retirement and benefit plans in 50 states through offices located in Michigan, Minnesota, and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.

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