Critical Survey: Princeton National Bancorp (OTCMKTS:PNBC) and Nicolet Bankshares (NYSE:NIC)

Nicolet Bankshares (NYSE:NIC) and Princeton National Bancorp (OTCMKTS:PNBC) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Nicolet Bankshares and Princeton National Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nicolet Bankshares	23.35%	10.56%	1.34%
Princeton National Bancorp	N/A	N/A	N/A

Institutional & Insider Ownership

43.1% of Nicolet Bankshares shares are owned by institutional investors. 16.4% of Nicolet Bankshares shares are owned by company insiders. Comparatively, 6.6% of Princeton National Bancorp shares are owned 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.

Earnings and Valuation

This table compares Nicolet Bankshares and Princeton National Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nicolet Bankshares	$349.34 million	4.94	$61.52 million	$7.86	14.42
Princeton National Bancorp	N/A	N/A	N/A	N/A	N/A

Nicolet Bankshares has higher revenue and earnings than Princeton National Bancorp.

Analyst Recommendations

This is a summary of recent recommendations for Nicolet Bankshares and Princeton National Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nicolet Bankshares	0	3	2	0	2.40
Princeton National Bancorp	0	0	0	0	0.00

Nicolet Bankshares presently has a consensus target price of $106.00, indicating a potential downside of 6.48%. Given Princeton National Bancorp’s higher probable upside, analysts clearly believe Princeton National Bancorp is more favorable than Nicolet Bankshares.

Summary

Nicolet Bankshares beats Princeton National Bancorp on 8 of the 9 factors compared between the two stocks.

About Nicolet Bankshares

Nicolet Bankshares, Inc. operates as the bank holding company for Nicolet National Bank that provides banking products and services for businesses and individuals in Wisconsin and Michigan. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien and junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, and remote deposit capture services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, and official bank checks, as well as facilitates crop insurance products. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. The company was incorporated in 2000 and is headquartered in Green Bay, Wisconsin.

About Princeton National Bancorp

Princeton National Bancorp, Inc. does not have significant operations. Previously it operated as a holding company for Citizens First National Bank that provided commercial banking and trust services in Illinois. The company was incorporated in 1981 and is headquartered in Princeton, Illinois.