Analyzing Bank of America (NYSE:BAC) and Pioneer Bankshares (OTCMKTS:PNBI)

Bank of America (NYSE:BAC) and Pioneer Bankshares (OTCMKTS:PNBI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a summary of recent recommendations for Bank of America and Pioneer Bankshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of America 2 6 15 0 2.57
Pioneer Bankshares 0 0 0 0 N/A

Bank of America currently has a consensus target price of $33.08, suggesting a potential downside of 5.78%. Given Bank of America’s higher probable upside, research analysts plainly believe Bank of America is more favorable than Pioneer Bankshares.

Profitability

This table compares Bank of America and Pioneer Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of America 19.50% 8.00% 0.74%
Pioneer Bankshares N/A N/A N/A

Institutional and Insider Ownership

68.1% of Bank of America shares are held by institutional investors. 0.2% of Bank of America shares are held by company insiders. Comparatively, 13.7% of Pioneer Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Bank of America and Pioneer Bankshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of America $113.59 billion 2.67 $27.43 billion $2.94 11.94
Pioneer Bankshares N/A N/A N/A N/A N/A

Bank of America has higher revenue and earnings than Pioneer Bankshares.

Volatility & Risk

Bank of America has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Pioneer Bankshares has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Dividends

Bank of America pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. Pioneer Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 3.4%. Bank of America pays out 24.5% of its earnings in the form of a dividend. Bank of America has raised its dividend for 1 consecutive years.

Summary

Bank of America beats Pioneer Bankshares on 9 of the 12 factors compared between the two stocks.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets segments. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions, as well as customized solutions, including specialty asset management services. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, fixed-income, and mortgage-related products. As of May 7, 2020, it served approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers; approximately 16,900 ATMs; and digital banking platforms with approximately 39 million active users. The company was founded in 1784 and is headquartered in Charlotte, North Carolina.

About Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services in Virginia. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise personal installment and single-pay loans; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction, as well as dealer loans, home mortgage loans, home equity loans, and consumer and auto lending services. The company also provides credit and debit cards, safe deposit boxes, online and mobile banking, bill pay and e-statements, remote deposit capture, and cash management services. In addition, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed and variable annuities, and personalized investment advisory services. Further, the company provides insurance products, such as homeowners, automobile, life, and health insurance; and real estate, professional liability, personal injury, and workman's compensation insurance. It operates branch offices in Stanley, Luray, Shenandoah, Harrisonburg, Stanardsville, Charlottesville, and Ruckersville. The company was founded in 1909 and is headquartered in Stanley, Virginia.

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