Head to Head Survey: Madison County Financial (OTCMKTS:MCBK) versus National Bankshares (NASDAQ:NKSH)

National Bankshares (NASDAQ:NKSH) and Madison County Financial (OTCMKTS:MCBK) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Earnings and Valuation

This table compares National Bankshares and Madison County Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bankshares	$79.08 million	2.91	$7.62 million	$2.04	17.72
Madison County Financial	$29.54 million	2.54	$3.82 million	N/A	N/A

National Bankshares has higher revenue and earnings than Madison County Financial.

Risk & Volatility

National Bankshares has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Madison County Financial has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for National Bankshares and Madison County Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bankshares	0	1	0	0	2.00
Madison County Financial	0	0	0	0	0.00

Dividends

National Bankshares pays an annual dividend of $1.56 per share and has a dividend yield of 4.3%. Madison County Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. National Bankshares pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

29.7% of National Bankshares shares are held by institutional investors. 3.2% of National Bankshares shares are held by company insiders. Comparatively, 16.9% of Madison County Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Bankshares	15.56%	8.62%	0.80%
Madison County Financial	N/A	N/A	N/A

Summary

National Bankshares beats Madison County Financial on 10 of the 12 factors compared between the two stocks.

About National Bankshares

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. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.

About Madison County Financial

Madison County Financial, Inc. operates as the holding company for Madison County Bank that provides banking and financial services to individual and corporate customers in Nebraska, the United States. It offers checking, money market savings, savings, and individual retirement accounts; certificates of deposit; credit and debit cards; home loans; and consumer loans, including home equity lines of credit, second mortgage, home improvement, recreational vehicle, personal, and overdraft protection loans, as well as loans for automobiles, trucks, and vans. The company also provides agricultural real estate, machinery and equipment, livestock and crop, and operating loans; and commercial real estate, construction, investment property, and working capital loans, as well as equipment financing services. In addition, it offers online and mobile banking, and merchant services. The company was formerly known as Madison County Holding Company and changed its name to Madison County Financial, Inc. in October 2012. Madison County Financial, Inc. was founded in 1888 and is headquartered in Madison, Nebraska.