Contrasting First National (OTCMKTS:FXNC) & Security Federal Co. (SC) (OTCMKTS:SFDL)

First National (OTCMKTS:FXNC) and Security Federal Co. (SC) (OTCMKTS:SFDL) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for First National and Security Federal Co. (SC), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First National 0 0 0 0 N/A
Security Federal Co. (SC) 0 0 0 0 N/A

Valuation & Earnings

This table compares First National and Security Federal Co. (SC)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First National $40.29 million 1.71 $10.14 million N/A N/A
Security Federal Co. (SC) $46.03 million 1.68 $7.79 million N/A N/A

First National has higher earnings, but lower revenue than Security Federal Co. (SC).

Dividends

First National pays an annual dividend of $0.44 per share and has a dividend yield of 3.2%. Security Federal Co. (SC) pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%.

Insider & Institutional Ownership

6.2% of First National shares are held by institutional investors. 10.9% of First National shares are held by company insiders. Comparatively, 35.8% of Security Federal Co. (SC) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

First National has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Security Federal Co. (SC) has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares First National and Security Federal Co. (SC)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First National 25.15% 16.11% 1.34%
Security Federal Co. (SC) 14.50% 7.33% 0.68%

Summary

First National beats Security Federal Co. (SC) on 7 of the 11 factors compared between the two stocks.

First National Company Profile

First National Corporation operates as the bank holding company for First Bank that provides a range of 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, individual retirement, certificates of deposit, and cash management accounts, as well as 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 various types of commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. The company's loan products also 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. In addition, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Further, the company offers title insurance and investment services; and holds other real estate owned and office sites. Additionally, it provides Internet banking, mobile banking, remote deposit capture, and other traditional banking services. The company operates through 15 bank branch offices, a loan production office, and a customer service center, as well as a network of ATMs. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.

Security Federal Co. (SC) Company Profile

Security Federal Corporation operates as the holding company for Security Federal Bank that provides various banking products and services. It accepts various deposit products, such as savings accounts, checking accounts, various money market accounts, fixed interest rate certificates, negotiated rate jumbo certificates of deposit, and individual retirement accounts. The company also originates commercial real estate loans, commercial business loans, and consumer loans, as well as mortgage loans to buy or refinance one-to-four family residential real estate; and construction loans on single-family residences, multi-family dwellings and projects, and commercial real estate. In addition, it provides loans for the acquisition, development, and construction of residential subdivisions and commercial projects. Further, the company offers trust, financial planning, and financial management services; and operates an insurance agency that offers auto, business, life, health, and home insurance products, as well as provides insurance premium financing services. It operates 16 full service branch offices in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener, and West Columbia, South Carolina, as well as in Evans, Georgia. The company was founded in 1922 and is headquartered in Aiken, South Carolina.

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