American National Bankshares (NASDAQ:AMNB – Get Rating) and Capital One Financial (NYSE:COF – Get Rating) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability:
This table compares American National Bankshares and Capital One Financial’s net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| American National Bankshares | 36.26% | 11.75% | 1.26% |
| Capital One Financial | 34.71% | 18.66% | 2.67% |
Earnings & Valuation:
This table compares American National Bankshares and Capital One Financial’s gross revenue, earnings per share and valuation.
| Gross Revenue: | Price/Sales Ratio: | Net Income: | Earnings Per Share: | Price/Earnings Ratio: | |
| American National Bankshares | $116.83 million | 3.18: | $43.53 million | $3.82 | 9:07 a.m |
| Capital One Financial | $32.03 billion | 1.31 am | $12.39 billion | $25.43 | 4:20 |
Capital One Financial has higher revenue and earnings than American National Bankshares. Capital One Financial is trading at a lower price-to-earnings ratio than American National Bankshares, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk:
American National Bankshares has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
Analyst Recommendations:
This is a breakdown of current recommendations and price targets for American National Bankshares and Capital One Financial, as provided by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| American National Bankshares | 0: | 0: | 2: | 0: | 3:00 |
| Capital One Financial | 1: | 6:00 | 14:00 | 0: | 2.62: |
American National Bankshares currently has a consensus price target of $38.25, suggesting a potential upside of 10.36%. Capital One Financial has a consensus price target of $168.35, suggesting a potential upside of 57.60%. Given Capital One Financial’s higher possible upside, analysts plainly believe Capital One Financial is more favorable than American National Bankshares.
Dividends:
American National Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.2%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 2.2%. American National Bankshares pays out 29.3% of its earnings in the form of a dividend. Capital One Financial pays out 9.4% 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. American National Bankshares has increased its dividend for 1 consecutive year and Capital One Financial has increased its dividend for 1 consecutive year.
Institutional & Insider Ownership
39.8% of American National Bank shares are owned by institutional investors. Comparatively, 89.3% of Capital One Financial shares are owned by institutional investors. 4.0% of American National Bankshares shares are owned by company insiders. Comparatively, 1.3% of Capital One Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary:
Capital One Financial beats American National Bankshares on 10 of the 16 factors compared between the two stocks.
About American National Bankshares: (Get Rating)
American National Bankshares Inc. operates as the bank holding company for American National Bank and Trust Company that provides financial products and services. The company operates in two segments, Community Banking and Wealth Management. It accepts deposit products, including checking, money market, savings, and consumer and commercial time deposits. The company’s loan products include commercial and residential real estate loans, commercial loans to small and medium-sized businesses, construction and land development loans, home equity loans, mortgage loans, and consumer loans. It also offers wealth management services, including estate planning, trust account administration, and retail brokerage services; investment management services, such as purchasing equity, fixed income, and mutual fund investments for customer accounts; online and telephone banking services; and insurance services, as well as operates 37 automated teller machines. As of December 31, 2021, the company operated 26 banking offices in south central Virginia and north central North Carolina; and one loan production office in Roanoke, Virginia. American National Bankshares Inc. was founded in 1909 and is based in Danville, Virginia.
About Capital One Financial: (Get Rating)
Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments. Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafes, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.
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