Virginia National Bankshares (NASDAQ:VABK) versus Community Bank System (NYSE:CBU) Head-To-Head Contrast

Community Bank System (NYSE:CBU – Get Free Report) and Virginia National Bankshares (NASDAQ:VABK – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Community Bank System pays an annual dividend of $1.80 per share and has a dividend yield of 3.8%. Virginia National Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 4.5%. Community Bank System pays out 71.1% of its earnings in the form of a dividend. Virginia National Bankshares pays out 36.9% 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. Community Bank System has increased its dividend for 32 consecutive years and Virginia National Bankshares has increased its dividend for 1 consecutive years. Virginia National Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Community Bank System has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Institutional & Insider Ownership

75.4% of Community Bank System shares are owned by institutional investors. Comparatively, 41.4% of Virginia National Bankshares shares are owned by institutional investors. 1.8% of Community Bank System shares are owned by insiders. Comparatively, 12.6% of Virginia National Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Community Bank System and Virginia National Bankshares, as provided by MarketBeat.com.

Community Bank System currently has a consensus target price of $54.00, indicating a potential upside of 14.36%. Given Community Bank System’s higher probable upside, research analysts clearly believe Community Bank System is more favorable than Virginia National Bankshares.

Earnings and Valuation

This table compares Community Bank System and Virginia National Bankshares’ top-line revenue, earnings per share and valuation.

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

Profitability

This table compares Community Bank System and Virginia National Bankshares’ net margins, return on equity and return on assets.

Summary

Community Bank System beats Virginia National Bankshares on 9 of the 16 factors compared between the two stocks.

About Community Bank System

(Get Free Report)

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, VEBA/HRA, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.

About Virginia National Bankshares

(Get Free Report)

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 four segments: Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. The company also 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. In addition, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, brokerage, insurance, consulting, and related services. Further, 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.