Virginia National Bankshares (NASDAQ:VABK) and Banc of California (NYSE:BANC) Financial Survey

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

Profitability

This table compares Virginia National Bankshares and Banc of California’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virginia National Bankshares	20.32%	10.77%	1.06%
Banc of California	7.06%	6.20%	0.53%

Dividends

Virginia National Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.8%. Banc of California pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Virginia National Bankshares pays out 41.9% of its earnings in the form of a dividend. Banc of California pays out 71.4% 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. Virginia National Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Virginia National Bankshares has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Banc of California has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

37.4% of Virginia National Bankshares shares are held by institutional investors. Comparatively, 86.9% of Banc of California shares are held by institutional investors. 13.9% of Virginia National Bankshares shares are held by insiders. Comparatively, 2.7% of Banc of California shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Virginia National Bankshares and Banc of California”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virginia National Bankshares	$53.06 million	3.52	$16.97 million	$3.15	10.99
Banc of California	$985.89 million	2.12	$126.89 million	$0.56	23.55

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Virginia National Bankshares and Banc of California, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virginia National Bankshares	0	0	0	0	0.00
Banc of California	0	4	7	0	2.64

Banc of California has a consensus price target of $17.73, suggesting a potential upside of 34.43%. Given Banc of California’s stronger consensus rating and higher possible upside, analysts plainly believe Banc of California is more favorable than Virginia National Bankshares.

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.

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.