Allegiance Bancshares (NASDAQ:ABTX) vs. Farmers National Banc (NASDAQ:FMNB) Head to Head Survey


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Allegiance Bancshares (NASDAQ:ABTX) and Farmers National Banc (NASDAQ:FMNB) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Allegiance Bancshares and Farmers National Banc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegiance Bancshares 0 3 0 0 2.00
Farmers National Banc 0 0 3 0 3.00

Allegiance Bancshares presently has a consensus price target of $26.50, indicating a potential downside of 33.85%. Farmers National Banc has a consensus price target of $17.75, indicating a potential upside of 4.60%. Given Farmers National Banc’s stronger consensus rating and higher probable upside, analysts clearly believe Farmers National Banc is more favorable than Allegiance Bancshares.

Dividends

Allegiance Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Farmers National Banc pays an annual dividend of $0.44 per share and has a dividend yield of 2.6%. Allegiance Bancshares pays out 18.7% of its earnings in the form of a dividend. Farmers National Banc pays out 34.1% 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. Allegiance Bancshares has increased its dividend for 1 consecutive years and Farmers National Banc has increased its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Allegiance Bancshares and Farmers National Banc’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allegiance Bancshares $246.33 million 3.28 $52.96 million $2.57 15.59
Farmers National Banc $130.59 million 3.68 $35.76 million $1.29 13.16

Allegiance Bancshares has higher revenue and earnings than Farmers National Banc. Farmers National Banc is trading at a lower price-to-earnings ratio than Allegiance Bancshares, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Allegiance Bancshares has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Institutional and Insider Ownership

44.3% of Allegiance Bancshares shares are held by institutional investors. Comparatively, 38.3% of Farmers National Banc shares are held by institutional investors. 8.6% of Allegiance Bancshares shares are held by insiders. Comparatively, 8.7% of Farmers National Banc 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 Allegiance Bancshares and Farmers National Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegiance Bancshares 17.69% 6.00% 0.80%
Farmers National Banc 28.05% 13.01% 1.51%

Summary

Farmers National Banc beats Allegiance Bancshares on 9 of the 16 factors compared between the two stocks.

About Allegiance Bancshares

Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, money market accounts, savings accounts, and other time deposits; and certificates of deposit. The company also grants various loan products, which include commercial and industrial loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machines, drive-through services, and depository facilities; mobile banking services; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of December 31, 2020, it operated 28 offices, including 27 bank offices in the Houston metropolitan area and one office in Beaumont. The company was founded in 2007 and is headquartered in Houston, Texas.

About Farmers National Banc

Farmers National Banc Corp., a financial holding company, operates in the banking, trust, retirement consulting, insurance, and financial management industries. 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, MasterCard and Visa credit cards, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, and employee benefit plans; retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. It operates through 39 locations in northeastern region of Ohio and two-branch locations in southwestern Pennsylvania. The company was founded in 1887 and is headquartered in Canfield, Ohio.

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