Southern First Bancshares (NASDAQ:SFST) & First National (NASDAQ:FXNC) Financial Contrast

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

Profitability

This table compares First National and Southern First Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National	9.53%	11.34%	0.96%
Southern First Bancshares	11.83%	7.63%	0.61%

Analyst Recommendations

This is a summary of recent ratings for First National and Southern First Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	2	0	0	2.00
Southern First Bancshares	0	2	1	0	2.33

First National currently has a consensus target price of $28.50, indicating a potential upside of 12.12%. Southern First Bancshares has a consensus target price of $51.00, indicating a potential downside of 3.39%. Given First National’s higher possible upside, research analysts clearly believe First National is more favorable than Southern First Bancshares.

Institutional & Insider Ownership

33.9% of First National shares are held by institutional investors. Comparatively, 75.0% of Southern First Bancshares shares are held by institutional investors. 14.3% of First National shares are held by company insiders. Comparatively, 7.1% of Southern First Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares First National and Southern First Bancshares”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	$92.70 million	2.47	$6.97 million	$1.26	20.17
Southern First Bancshares	$213.35 million	2.03	$15.53 million	$3.23	16.34

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

Risk & Volatility

First National has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Southern First Bancshares has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Summary

Southern First Bancshares beats First National on 8 of the 14 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 Southern First Bancshares

Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.