Financial Comparison: Univest Corporation of Pennsylvania (NASDAQ:UVSP) versus Quaint Oak Bancorp (OTCMKTS:QNTO)

Univest Corporation of Pennsylvania (NASDAQ:UVSP) and Quaint Oak Bancorp (OTCMKTS:QNTO) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Volatility and Risk

Univest Corporation of Pennsylvania has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Quaint Oak Bancorp has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Institutional and Insider Ownership

75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. Comparatively, 8.6% of Quaint Oak Bancorp shares are owned by institutional investors. 1.7% of Univest Corporation of Pennsylvania shares are owned by insiders. Comparatively, 27.5% of Quaint Oak Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Univest Corporation of Pennsylvania pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.8%. Univest Corporation of Pennsylvania pays out 29.3% of its earnings in the form of a dividend. Quaint Oak Bancorp pays out 21.1% 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. Univest Corporation of Pennsylvania has raised its dividend for 1 consecutive years. Univest Corporation of Pennsylvania is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Univest Corporation of Pennsylvania and Quaint Oak Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Univest Corporation of Pennsylvania	16.94%	9.63%	1.09%
Quaint Oak Bancorp	4.06%	3.86%	0.30%

Analyst Ratings

This is a breakdown of current ratings and price targets for Univest Corporation of Pennsylvania and Quaint Oak Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Univest Corporation of Pennsylvania	0	2	1	0	2.33
Quaint Oak Bancorp	0	0	0	0	0.00

Univest Corporation of Pennsylvania presently has a consensus target price of $32.50, indicating a potential upside of 5.01%. Given Univest Corporation of Pennsylvania’s stronger consensus rating and higher probable upside, equities analysts clearly believe Univest Corporation of Pennsylvania is more favorable than Quaint Oak Bancorp.

Earnings and Valuation

This table compares Univest Corporation of Pennsylvania and Quaint Oak Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Univest Corporation of Pennsylvania	$320.29 million	2.78	$75.93 million	$3.00	10.32
Quaint Oak Bancorp	$51.59 million	0.46	$2.80 million	$0.76	11.91

Univest Corporation of Pennsylvania has higher revenue and earnings than Quaint Oak Bancorp. Univest Corporation of Pennsylvania is trading at a lower price-to-earnings ratio than Quaint Oak Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Univest Corporation of Pennsylvania beats Quaint Oak Bancorp on 14 of the 17 factors compared between the two stocks.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About Quaint Oak Bancorp

Quaint Oak Bancorp, Inc. operates as the holding company for Quaint Oak Bank that provides banking products and services in Pennsylvania. It offers various deposit products, including money market accounts, certificates of deposit, interest and non-interest-bearing checking accounts for businesses and consumers, and savings accounts. The company also provides residential and commercial mortgage loans, construction loans, commercial business loans, home equity loans, and lines of credit; mortgage banking, real estate sales, title abstract, and insurance services; and multi-state equipment financing services. It serves its customers through offices, as well as correspondence, telephone, and online banking. Quaint Oak Bancorp, Inc. was incorporated in 1926 and is headquartered in Southampton, Pennsylvania.