Ameris Bancorp (NYSE:ABCB) versus First National (NASDAQ:FXNC) Financial Review

First National (NASDAQ:FXNC) and Ameris Bancorp (NYSE:ABCB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Insider & Institutional Ownership

33.9% of First National shares are held by institutional investors. Comparatively, 91.6% of Ameris Bancorp shares are held by institutional investors. 14.2% of First National shares are held by insiders. Comparatively, 5.7% of Ameris Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for First National and Ameris Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	1	1	0	2.50
Ameris Bancorp	0	4	4	0	2.50

Ameris Bancorp has a consensus price target of $90.67, indicating a potential upside of 14.96%. Given Ameris Bancorp’s higher probable upside, analysts clearly believe Ameris Bancorp is more favorable than First National.

Dividends

First National pays an annual dividend of $0.68 per share and has a dividend yield of 2.3%. Ameris Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. First National pays out 28.3% of its earnings in the form of a dividend. Ameris Bancorp pays out 14.5% 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. First National has increased its dividend for 10 consecutive years. First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First National	18.43%	11.50%	1.05%
Ameris Bancorp	21.98%	10.62%	1.55%

Earnings and Valuation

This table compares First National and Ameris Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National	$116.51 million	2.28	$17.70 million	$2.40	12.26
Ameris Bancorp	$1.23 billion	4.31	$412.15 million	$5.53	14.26

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

Volatility and Risk

First National has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Ameris Bancorp has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Summary

Ameris Bancorp beats First National on 12 of the 16 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 Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers. It operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. The company offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. It also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and personal credit lines. In addition, the company originates, administers, and services commercial insurance premium loans, equipment finance loans, and small business administration loans. It operates full service domestic banking offices, and mortgage and loan production offices. The company was founded in 1971 and is headquartered in Atlanta, Georgia.