Farmers National Banc (NASDAQ:FMNB – Get Free Report) and United Bancorp (NASDAQ:UBCP – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Valuation & Earnings
This table compares Farmers National Banc and United Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Farmers National Banc | $279.92 million | 1.77 | $54.59 million | $1.45 | 9.06 |
| United Bancorp | $47.51 million | 1.81 | $7.75 million | $1.34 | 11.12 |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Farmers National Banc and United Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Farmers National Banc | 1 | 2 | 1 | 0 | 2.00 |
| United Bancorp | 0 | 1 | 0 | 0 | 2.00 |
Farmers National Banc currently has a consensus price target of $14.50, suggesting a potential upside of 10.43%. Given Farmers National Banc’s higher probable upside, equities analysts plainly believe Farmers National Banc is more favorable than United Bancorp.
Dividends
Farmers National Banc pays an annual dividend of $0.68 per share and has a dividend yield of 5.2%. United Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 5.1%. Farmers National Banc pays out 46.9% of its earnings in the form of a dividend. United Bancorp pays out 56.7% 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. United Bancorp has raised its dividend for 13 consecutive years. Farmers National Banc is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Farmers National Banc and United Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Farmers National Banc | 19.50% | 13.34% | 1.14% |
| United Bancorp | 16.32% | 12.44% | 0.91% |
Institutional and Insider Ownership
38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 15.4% of United Bancorp shares are held by institutional investors. 3.9% of Farmers National Banc shares are held by insiders. Comparatively, 12.9% of United Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Farmers National Banc has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, United Bancorp has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
Summary
Farmers National Banc beats United Bancorp on 12 of the 16 factors compared between the two stocks.
About Farmers National Banc
Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It 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, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.
About United Bancorp
United Bancorp, Inc. operates as the bank holding company for Unified Bank that provides commercial and retail banking services in Ohio. The company provides range of banking and financial services, which includes accepting demand, savings, and time deposits. It also offers commercial, real estate and consumer loans. United Bancorp, Inc. was founded in 1902 and is headquartered in Martins Ferry, Ohio.
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