Farmers National Banc (NASDAQ:FMNB – Get Free Report) and ConnectOne Bancorp (NASDAQ:CNOB – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Dividends
Farmers National Banc pays an annual dividend of $0.68 per share and has a dividend yield of 5.2%. ConnectOne Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 3.6%. Farmers National Banc pays out 46.9% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 38.1% 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.
Analyst Ratings
This is a summary of recent recommendations and price targets for Farmers National Banc and ConnectOne Bancorp, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Farmers National Banc | 0 | 2 | 1 | 0 | 2.33 |
ConnectOne Bancorp | 0 | 1 | 2 | 1 | 3.00 |
Volatility and Risk
Farmers National Banc has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Insider and Institutional Ownership
38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 67.7% of ConnectOne Bancorp shares are held by institutional investors. 4.0% of Farmers National Banc shares are held by insiders. Comparatively, 6.4% of ConnectOne Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Farmers National Banc and ConnectOne Bancorp’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Farmers National Banc | 21.05% | 15.68% | 1.15% |
ConnectOne Bancorp | 15.29% | 7.39% | 0.83% |
Valuation & Earnings
This table compares Farmers National Banc and ConnectOne Bancorp’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Farmers National Banc | $255.20 million | 1.94 | $49.93 million | $1.45 | 9.10 |
ConnectOne Bancorp | $504.07 million | 1.51 | $87.00 million | $1.89 | 10.54 |
ConnectOne Bancorp has higher revenue and earnings than Farmers National Banc. Farmers National Banc is trading at a lower price-to-earnings ratio than ConnectOne Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
ConnectOne Bancorp beats Farmers National Banc on 12 of the 17 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 ConnectOne Bancorp
ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the New York Metropolitan area and South Florida market. The company offers personal and business checking, money market, and time and savings accounts; credit cards, wire transfers, safe deposit boxes, automated teller services and telephone, and internet and mobile banking. It provides retirement accounts, consumers and cash management services for business clients, including treasury direct, automated clearing house, remote deposit capture, and digital invoicing. In addition, the company offers consumer and commercial business loans, including lines of credit, commercial and residential mortgages, home equity and bridge loans, and other personal loans; commercial loans secured by collateral, such as business assets comprising accounts receivable, inventory and equipment, and mortgages filed on commercial and residential real estate, as well as cash balances and marketable securities. Further, it provides real estate loans, which includes loans secured by first liens on completed commercial properties, including multi-family properties, to purchase or refinance properties; residential mortgages, such as loans secured by first liens on 1-4 family and condominium; and cooperative residential real estate loans. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.
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