Financial Analysis: Westamerica Bancorporation (NASDAQ:WABC) vs. First National Bank Alaska (OTCMKTS:FBAK)

Westamerica Bancorporation (NASDAQ:WABC) and First National Bank Alaska (OTCMKTS:FBAK) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional & Insider Ownership

81.9% of Westamerica Bancorporation shares are owned by institutional investors. 5.3% of Westamerica Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Westamerica Bancorporation has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, First National Bank Alaska has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Westamerica Bancorporation and First National Bank Alaska, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westamerica Bancorporation	0	2	0	0	2.00
First National Bank Alaska	0	0	0	0	0.00

Westamerica Bancorporation presently has a consensus price target of $52.00, suggesting a potential upside of 4.99%. Given Westamerica Bancorporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Westamerica Bancorporation is more favorable than First National Bank Alaska.

Valuation and Earnings

This table compares Westamerica Bancorporation and First National Bank Alaska”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westamerica Bancorporation	$311.17 million	4.05	$138.64 million	$4.78	10.36
First National Bank Alaska	$87.73 million	9.76	$67.05 million	$23.37	11.55

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

Profitability

This table compares Westamerica Bancorporation and First National Bank Alaska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westamerica Bancorporation	43.69%	13.81%	2.09%
First National Bank Alaska	N/A	14.33%	1.48%

Dividends

Westamerica Bancorporation pays an annual dividend of $1.84 per share and has a dividend yield of 3.7%. First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.9%. Westamerica Bancorporation pays out 38.5% of its earnings in the form of a dividend. First National Bank Alaska pays out 68.5% 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. Westamerica Bancorporation has increased its dividend for 34 consecutive years.

Summary

Westamerica Bancorporation beats First National Bank Alaska on 11 of the 16 factors compared between the two stocks.

About Westamerica Bancorporation

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was founded in 1884 and is headquartered in San Rafael, California.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.