SB One Bancorp (NASDAQ: FMNB) and Farmers National Banc (NASDAQ:FMNB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Dividends

SB One Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.1%. Farmers National Banc pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. SB One Bancorp pays out 21.1% of its earnings in the form of a dividend. Farmers National Banc pays out 31.1% 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.

Profitability

This table compares SB One Bancorp and Farmers National Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SB One Bancorp 12.21% 9.30% 0.95%
Farmers National Banc 24.60% 11.96% 1.33%

Insider & Institutional Ownership

50.7% of SB One Bancorp shares are held by institutional investors. Comparatively, 35.7% of Farmers National Banc shares are held by institutional investors. 10.5% of SB One Bancorp shares are held by insiders. Comparatively, 9.1% of Farmers National Banc shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for SB One Bancorp and Farmers National Banc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SB One Bancorp 0 2 0 0 2.00
Farmers National Banc 0 2 1 0 2.33

SB One Bancorp presently has a consensus price target of $32.75, suggesting a potential upside of 18.02%. Farmers National Banc has a consensus price target of $16.50, suggesting a potential upside of 4.43%. Given SB One Bancorp’s higher possible upside, equities research analysts clearly believe SB One Bancorp is more favorable than Farmers National Banc.

Risk and Volatility

SB One Bancorp has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Valuation & Earnings

This table compares SB One Bancorp and Farmers National Banc’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SB One Bancorp $43.98 million 5.00 $5.69 million $1.42 19.54
Farmers National Banc $104.58 million 4.18 $22.71 million $0.90 17.56

Farmers National Banc has higher revenue and earnings than SB One Bancorp. Farmers National Banc is trading at a lower price-to-earnings ratio than SB One Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Farmers National Banc beats SB One Bancorp on 9 of the 16 factors compared between the two stocks.

SB One Bancorp Company Profile

SB One Bancorp operates as a bank holding company for SB One Bank that provides commercial banking and related financial services to individual, business, and government customers. It operates in two segments, Banking and Financial Services, and Insurance Services. The company's deposit products include personal and business checking, money market, and savings accounts, as well as time and demand deposits. Its loan portfolio comprises commercial, consumer, residential mortgage, home equity, and personal loans. The company also operates as a full service general insurance agency, which offers commercial and personal lines of insurance. It operates eight branches located in Sussex County, New Jersey; one branch in Warren County, New Jersey; one branch in Bergen County, New Jersey; and one in Queens County, New York. The company was formerly known as Sussex Bancorp and changed its name to SB One Bancorp in April 2018. SB One Bancorp was founded in 1975 and is based in Rockaway, New Jersey.

Farmers National Banc Company Profile

Farmers National Banc Corp., through its subsidiaries, operates in the banking, trust, retirement consulting, insurance, and financial management industries. The company offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, credit card, brokerage, and other services. It also provides personal and corporate trust services in the areas of estate settlement, trust administration, and employee benefit plans; retirement services; and various insurance products through licensed representatives, as well as invests in municipal securities. As of February 27, 2018, the company operated 41 locations in Mahoning, Trumbull, Columbiana, Stark, Summit, Wayne, Medina, Holmes, and Cuyahoga Counties in Ohio, as well as Beaver County in Pennsylvania; and 4 trust offices. Farmers National Banc Corp. was founded in 1887 and is headquartered in Canfield, Ohio.

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