Financial Review: Capital One Financial (NYSE:COF) and Pioneer Bankshares (OTCMKTS:PNBI)

Pioneer Bankshares (OTCMKTS:PNBI) and Capital One Financial (NYSE:COF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider & Institutional Ownership

89.8% of Capital One Financial shares are held by institutional investors. 13.7% of Pioneer Bankshares shares are held by insiders. Comparatively, 1.3% of Capital One Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Pioneer Bankshares and Capital One Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Bankshares	$15.49 million	1.70	$1.90 million	N/A	N/A
Capital One Financial	$38.43 billion	1.92	$4.89 billion	$10.59	18.26

Capital One Financial has higher revenue and earnings than Pioneer Bankshares.

Profitability

This table compares Pioneer Bankshares and Capital One Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pioneer Bankshares	N/A	N/A	N/A
Capital One Financial	8.80%	9.00%	1.11%

Risk & Volatility

Pioneer Bankshares has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Dividends

Pioneer Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.2%. Capital One Financial pays out 22.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pioneer Bankshares and Capital One Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Bankshares	0	0	0	0	0.00
Capital One Financial	0	10	9	0	2.47

Capital One Financial has a consensus price target of $188.06, indicating a potential downside of 2.77%. Given Capital One Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Capital One Financial is more favorable than Pioneer Bankshares.

Summary

Capital One Financial beats Pioneer Bankshares on 11 of the 14 factors compared between the two stocks.

About Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services to individual consumers, small to medium size businesses, and professional community in the United States. 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, and auto 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 home mortgage and home equity loans. In addition, the company provides credit and debit cards, safe deposit boxes, online and mobile banking tools, merchant services, and cash management services. Further, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed, and variable annuities. Additionally, the company provides personalized investment advisory services, as well as securities and insurance products and services. Pioneer Bankshares, Inc. was founded in 1909 and is headquartered in Stanley, Virginia.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.