Analyzing LCNB (LCNB) and Its Rivals

LCNB (NASDAQ:LCNB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare LCNB to similar businesses based on the strength of its valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Institutional and Insider Ownership

34.7% of LCNB shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 5.7% of LCNB shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for LCNB and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCNB	0	2	1	0	2.33
LCNB Competitors	7497	30259	27867	1491	2.35

LCNB currently has a consensus target price of $20.00, suggesting a potential upside of 2.41%. As a group, “Banks” companies have a potential upside of 14.96%. Given LCNB’s rivals stronger consensus rating and higher probable upside, analysts clearly believe LCNB has less favorable growth aspects than its rivals.

Dividends

LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 4.5%. LCNB pays out 50.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. LCNB has increased its dividend for 7 consecutive years. LCNB lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares LCNB and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LCNB	20.02%	8.95%	1.11%
LCNB Competitors	15.62%	9.43%	0.93%

Risk & Volatility

LCNB has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, LCNB’s rivals have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares LCNB and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LCNB	$124.52 million	$23.12 million	11.16
LCNB Competitors	$9.95 billion	$2.42 billion	21.13

LCNB’s rivals have higher revenue and earnings than LCNB. LCNB is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

LCNB rivals beat LCNB on 13 of the 15 factors compared.

LCNB Company Profile

LCNB Corporation is a bank holding company headquartered in Lebanon, Ohio, and the parent of LCNB National Bank. The bank traces its history to 1877 and serves individuals, businesses, and organizations through a network of branches in Ohio. LCNB offers personal and business banking services, including deposit accounts, lending, and digital banking. Its other services include trust and wealth management, as well as mortgage lending.