Analyzing First National Bank Alaska (OTCMKTS:FBAK) and Touchstone Bankshares (OTCMKTS:TSBA)

Touchstone Bankshares (OTCMKTS:TSBA) and First National Bank Alaska (OTCMKTS:FBAK) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Profitability

This table compares Touchstone Bankshares and First National Bank Alaska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Touchstone Bankshares	N/A	N/A	N/A
First National Bank Alaska	N/A	12.91%	1.05%

Dividends

Touchstone Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. First National Bank Alaska pays an annual dividend of $12.80 per share and has a dividend yield of 6.6%. Touchstone Bankshares pays out 49.2% of its earnings in the form of a dividend. First National Bank Alaska pays out 67.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares Touchstone Bankshares and First National Bank Alaska’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Touchstone Bankshares	N/A	N/A	$1.61 million	$0.65	18.58
First National Bank Alaska	$240.24 million	2.56	$60.01 million	$18.96	10.23

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

Insider and Institutional Ownership

0.4% of Touchstone Bankshares shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Touchstone Bankshares and First National Bank Alaska, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Touchstone Bankshares	0	0	0	0	N/A
First National Bank Alaska	0	0	0	0	N/A

Risk & Volatility

Touchstone Bankshares has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, First National Bank Alaska has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Summary

First National Bank Alaska beats Touchstone Bankshares on 6 of the 10 factors compared between the two stocks.

About Touchstone Bankshares

Touchstone Bankshares, Inc. operates as the bank holding company for Touchstone Bank that provides various community banking products and services in the United States. The company offers personal and business savings and checking accounts. It also provides home mortgage, professional mortgage, home equity, auto, and personal term loans; personal lines of credit; and business loans comprising commercial real estate, operating capital, business term, and construction loans, as well as business lines of credit. In addition, the company offers credit and debit cards; and digital banking, treasury, wealth management, and financial planning services. It has branches in northern North Carolina and south-central Virginia. The company was founded in 1906 and is headquartered in Prince George, Virginia.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.