FNCB Bancorp (NASDAQ:FNCB) & LCNB (NASDAQ:LCNB) Critical Analysis

FNCB Bancorp (NASDAQ:FNCB) and LCNB (NASDAQ:LCNB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Risk & Volatility

FNCB Bancorp has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, LCNB has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares FNCB Bancorp and LCNB’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FNCB Bancorp $55.59 million 3.07 $15.35 million N/A N/A
LCNB $79.52 million 2.74 $20.08 million $1.55 11.25

LCNB has higher revenue and earnings than FNCB Bancorp.

Dividends

FNCB Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 3.5%. LCNB pays an annual dividend of $0.76 per share and has a dividend yield of 4.4%. LCNB pays out 49.0% of its earnings in the form of a dividend. FNCB Bancorp has raised its dividend for 2 consecutive years and LCNB has raised its dividend for 1 consecutive years.

Profitability

This table compares FNCB Bancorp and LCNB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FNCB Bancorp 34.69% 13.08% 1.37%
LCNB 26.11% 8.56% 1.15%

Institutional and Insider Ownership

13.1% of FNCB Bancorp shares are owned by institutional investors. Comparatively, 37.2% of LCNB shares are owned by institutional investors. 16.5% of FNCB Bancorp shares are owned by company insiders. Comparatively, 5.8% of LCNB shares 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 breakdown of current ratings and recommmendations for FNCB Bancorp and LCNB, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FNCB Bancorp 0 0 0 0 N/A
LCNB 0 0 1 0 3.00

LCNB has a consensus target price of $17.50, suggesting a potential upside of 0.40%. Given LCNB’s higher possible upside, analysts plainly believe LCNB is more favorable than FNCB Bancorp.

Summary

LCNB beats FNCB Bancorp on 8 of the 15 factors compared between the two stocks.

FNCB Bancorp Company Profile

FNCB Bancorp, Inc. is a bank holding company, which engages in the provision of financial services. Its products and services include online, mobile and telephone banking, debit cards, check imaging and electronic statements, residential mortgage loans, construction, land acquisition and development loans, commercial real estate loans, commercial and industrial loans, consumer loans, state and political subdivision loans, wealth management, and deposit activities. The company was founded in 1997 and is headquartered in Dunmore, PA.

LCNB Company Profile

LCNB Corp. is a financial holding company, which offers commercial and personal banking services. It offers services such as checking rates, debit card resources, electronic banking, fraud and identity theft, education and awareness. The company was founded in December 1998 and is headquartered in Lebanon, OH.

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