First National (NASDAQ:FXNC) and LINKBANCORP (NASDAQ:LNKB) Head-To-Head Comparison

First National (NASDAQ:FXNC) and LINKBANCORP (NASDAQ:LNKB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Dividends

First National pays an annual dividend of $0.62 per share and has a dividend yield of 3.2%. LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 4.3%. First National pays out 53.4% of its earnings in the form of a dividend. LINKBANCORP pays out 31.3% 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. First National has raised its dividend for 10 consecutive years. LINKBANCORP is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares First National and LINKBANCORP”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National	$70.49 million	2.50	$6.97 million	$1.16	16.91
LINKBANCORP	$110.14 million	2.38	$26.21 million	$0.96	7.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First National	7.51%	12.09%	1.01%
LINKBANCORP	15.64%	9.89%	0.95%

Institutional & Insider Ownership

33.9% of First National shares are owned by institutional investors. Comparatively, 37.5% of LINKBANCORP shares are owned by institutional investors. 14.3% of First National shares are owned by company insiders. Comparatively, 35.8% of LINKBANCORP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

First National has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, LINKBANCORP has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First National and LINKBANCORP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	2	0	0	2.00
LINKBANCORP	0	1	2	0	2.67

First National currently has a consensus target price of $24.75, suggesting a potential upside of 26.21%. LINKBANCORP has a consensus target price of $8.33, suggesting a potential upside of 19.05%. Given First National’s higher possible upside, equities research analysts clearly believe First National is more favorable than LINKBANCORP.

Summary

LINKBANCORP beats First National on 10 of the 17 factors compared between the two stocks.

About First National

First National Corporation operates as the bank holding company for First Bank that provides various commercial 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, and individual retirement accounts, as well as certificates of deposit and 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 commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. In addition, the company's loan products 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. Further, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Additionally, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.

About LINKBANCORP

LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.