National Bankshares Inc And Premier Financial Bancorp Inc Head To Head Compare

National Bankshares Inc versus Premier Financial Bancorp Inc Head to Head Compare

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This is a head to head compare of National Bankshares Inc (NASDAQ:NKSH) and Premier Financial Bancorp Inc (NASDAQ:PFBI) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
NKSH -13.8% +6.7% +12.1%
PFBI -3.7% +27.1% +37.8%

Premier Financial Bancorp Inc has a higher fundamental rating then National Bankshares Inc which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Premier Financial Bancorp Inc has larger revenue in the last year than National Bankshares Inc. Raw revenue comps do not affect the head to head rating.

Both NKSH and PFBI show positive earnings over the last year with the edge to NKSH.

Net Income

NKSH generates notably larger revenue per employee ($205,000) than PFBI ($160,000).

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

National Bankshares Inc generates $1.78 in revenue for every $1 of expense, very similar to Premier Financial Bancorp Inc's $1.67.

Revenue per Dollar of Expense

A nonperforming loan (NPL) is the sum of borrowed money upon which the debtor has not made his scheduled payments for at least 90 days. A nonperforming loan is either in default or close to being in default (Source: INVESTOPEDIA).PFBI shows 2.30% if its loans are "non-performing", massively higher than NKSH's 0.86%.

Non-performing Loans
over Total Loans

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

While Premier Financial Bancorp Inc is growing revenue, National Bankshares Inc revenue is actually shrinking.

Revenue Growth

For every $1 in revenue, the stock market prices in $6.25 in market cap for NKSH and $3.59 in market cap for PFBI.

Price to Sales

Premier Financial Bancorp Inc (NASDAQ:PFBI)
National Bankshares Inc (NASDAQ:NKSH) : 60 to 40