Critical Analysis: Pioneer Bankshares (OTCMKTS:PNBI) vs. LINKBANCORP (NASDAQ:LNKB)

LINKBANCORP (NASDAQ:LNKB) and Pioneer Bankshares (OTCMKTS:PNBI) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Dividends

LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 3.3%. Pioneer Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. LINKBANCORP pays out 33.3% of its earnings in the form of a dividend. Pioneer Bankshares pays out 31.5% 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. Pioneer Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares LINKBANCORP and Pioneer Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LINKBANCORP	$186.50 million	1.85	$33.51 million	$0.90	10.24
Pioneer Bankshares	$19.82 million	1.71	$2.68 million	$3.56	9.44

LINKBANCORP has higher revenue and earnings than Pioneer Bankshares. Pioneer Bankshares is trading at a lower price-to-earnings ratio than LINKBANCORP, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for LINKBANCORP and Pioneer Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LINKBANCORP	0	2	1	1	2.75
Pioneer Bankshares	0	0	0	0	0.00

LINKBANCORP currently has a consensus price target of $9.63, suggesting a potential upside of 4.39%. Given LINKBANCORP’s stronger consensus rating and higher probable upside, equities analysts clearly believe LINKBANCORP is more favorable than Pioneer Bankshares.

Insider and Institutional Ownership

37.5% of LINKBANCORP shares are owned by institutional investors. 37.5% of LINKBANCORP shares are owned by insiders. Comparatively, 13.7% of Pioneer Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

LINKBANCORP has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Pioneer Bankshares has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Profitability

This table compares LINKBANCORP and Pioneer Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LINKBANCORP	17.97%	8.85%	0.90%
Pioneer Bankshares	N/A	N/A	N/A

Summary

LINKBANCORP beats Pioneer Bankshares on 14 of the 17 factors compared between the two stocks.

About LINKBANCORP

LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.

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.