Comparing First National (NASDAQ:FXNC) and Pacific Premier Bancorp (NASDAQ:PPBI)

First National (NASDAQ:FXNC) and Pacific Premier Bancorp (NASDAQ:PPBI) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Risk & Volatility

First National has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

33.9% of First National shares are owned by institutional investors. Comparatively, 93.1% of Pacific Premier Bancorp shares are owned by institutional investors. 17.8% of First National shares are owned by company insiders. Comparatively, 2.2% of Pacific Premier Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First National and Pacific Premier Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	1	1	0	2.50
Pacific Premier Bancorp	0	3	3	0	2.50

First National currently has a consensus target price of $21.50, suggesting a potential downside of 10.42%. Pacific Premier Bancorp has a consensus target price of $26.50, suggesting a potential upside of 7.81%. Given Pacific Premier Bancorp’s higher probable upside, analysts clearly believe Pacific Premier Bancorp is more favorable than First National.

Dividends

First National pays an annual dividend of $0.62 per share and has a dividend yield of 2.6%. Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 5.4%. First National pays out 55.4% of its earnings in the form of a dividend. Pacific Premier Bancorp pays out -879.9% 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. Pacific Premier Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares First National and Pacific Premier Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National	$69.50 million	3.10	$9.62 million	$1.12	21.43
Pacific Premier Bancorp	$714.07 million	3.32	$30.85 million	($0.15)	-163.86

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

Profitability

This table compares First National and Pacific Premier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National	8.91%	6.52%	0.54%
Pacific Premier Bancorp	N/A	5.94%	0.93%

Summary

Pacific Premier Bancorp beats First National on 10 of the 15 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 Pacific Premier Bancorp

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, California.