Critical Contrast: F.N.B. Corporation (FNB) versus Southern National Bancorp of Virginia (SONA)

F.N.B. Corporation (NYSE: FNB) and Southern National Bancorp of Virginia (NASDAQ:SONA) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares F.N.B. Corporation and Southern National Bancorp of Virginia’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
F.N.B. Corporation $880.72 million 4.74 $170.89 million $0.77 16.77
Southern National Bancorp of Virginia $51.81 million 7.39 $10.31 million $0.31 51.65

F.N.B. Corporation has higher revenue and earnings than Southern National Bancorp of Virginia. F.N.B. Corporation is trading at a lower price-to-earnings ratio than Southern National Bancorp of Virginia, indicating that it is currently the more affordable of the two stocks.

Dividends

F.N.B. Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 3.7%. Southern National Bancorp of Virginia pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. F.N.B. Corporation pays out 62.3% of its earnings in the form of a dividend. Southern National Bancorp of Virginia pays out 103.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. F.N.B. Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares F.N.B. Corporation and Southern National Bancorp of Virginia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
F.N.B. Corporation 19.95% 6.81% 0.92%
Southern National Bancorp of Virginia 8.11% 6.60% 0.77%

Insider and Institutional Ownership

77.1% of F.N.B. Corporation shares are owned by institutional investors. Comparatively, 63.3% of Southern National Bancorp of Virginia shares are owned by institutional investors. 1.2% of F.N.B. Corporation shares are owned by insiders. Comparatively, 9.6% of Southern National Bancorp of Virginia shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

F.N.B. Corporation has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Southern National Bancorp of Virginia has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for F.N.B. Corporation and Southern National Bancorp of Virginia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
F.N.B. Corporation 0 2 8 1 2.91
Southern National Bancorp of Virginia 0 0 0 0 N/A

F.N.B. Corporation presently has a consensus target price of $17.39, indicating a potential upside of 34.69%. Given F.N.B. Corporation’s higher possible upside, equities research analysts clearly believe F.N.B. Corporation is more favorable than Southern National Bancorp of Virginia.

Summary

F.N.B. Corporation beats Southern National Bancorp of Virginia on 13 of the 16 factors compared between the two stocks.

About F.N.B. Corporation

F.N.B. Corporation is a financial holding company. The Company operates through four segments: Community Banking, Wealth Management, Insurance and Consumer Finance. Its Community Banking segment consists of First National Bank of Pennsylvania (FNBPA), which offers services, including commercial and individual demand, savings and time deposit accounts and commercial, mortgage and individual installment loans. It operates its Community Banking business through a network of over 290 branches in Pennsylvania, Ohio, Maryland and West Virginia. Its Wealth Management segment delivers wealth management services to individuals, corporations and retirement funds, as well as existing customers of Community Banking. The Company’s Insurance segment operates principally through First National Insurance Agency, LLC (FNIA), which is a subsidiary of the Corporation. Its Consumer Finance segment operates through its subsidiary, Regency Finance Company. It also operates other non-banking subsidiaries.

About Southern National Bancorp of Virginia

Southern National Bancorp of Virginia, Inc. (Southern National) is the bank holding company for Sonabank (Sonabank). The Company’s principal business is the acquisition of deposits from the general public through its branch offices and deposit intermediaries, as well as the use of these deposits to fund its loan and investment portfolios. Sonabank is a Virginia state chartered bank. Sonabank provides a range of financial services to individuals, and small and medium sized businesses. The Company focuses on making loans secured primarily by commercial real estate and other types of secured and unsecured commercial loans to small and medium-sized businesses in various industries, as well as loans to individuals for a variety of purposes. It focuses on serving small to medium-sized businesses in its market with a range of services, including an array of commercial mortgage and non-mortgage loans.

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