National Bankshares (NASDAQ:NKSH) versus Susquehanna Bancshares (NASDAQ:SUSQ) Critical Survey

National Bankshares (NASDAQ:NKSH) and Susquehanna Bancshares (NASDAQ:SUSQ) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

This table compares National Bankshares and Susquehanna Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Bankshares	9.64%	5.00%	0.43%
Susquehanna Bancshares	N/A	N/A	N/A

Insider and Institutional Ownership

29.7% of National Bankshares shares are owned by institutional investors. 2.8% of National Bankshares shares are owned by 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for National Bankshares and Susquehanna Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bankshares	0	0	1	0	3.00
Susquehanna Bancshares	0	0	0	0	0.00

National Bankshares currently has a consensus target price of $38.00, suggesting a potential upside of 42.70%. Given National Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe National Bankshares is more favorable than Susquehanna Bancshares.

Valuation and Earnings

This table compares National Bankshares and Susquehanna Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bankshares	$45.36 million	3.73	$7.62 million	$1.22	21.83
Susquehanna Bancshares	N/A	N/A	N/A	N/A	N/A

National Bankshares has higher revenue and earnings than Susquehanna Bancshares.

Summary

National Bankshares beats Susquehanna Bancshares on 9 of the 9 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 Susquehanna Bancshares

Susquehanna Bancshares, Inc. is a financial holding company. The Company conducts its business operations primarily through its commercial bank subsidiary, Susquehanna Bank, and other subsidiaries in the mid-Atlantic region to provide a range of retail and commercial banking and financial products and services. It provides a range of retail banking services, including checking, savings and club accounts, check cards, debit cards, money market accounts, certificates of deposit, individual retirement accounts, home equity lines of credit, residential mortgage loans, home improvement loans, automobile loans, personal loans, and internet and mobile banking services. It also provides a range of commercial banking services, including business checking accounts, cash management services, money market accounts, land acquisition and development loans, commercial loans, floor plan, equipment and working capital lines of credit, small business loans and internet banking services.