Oak Valley Bancorp (NASDAQ:OVLY) versus QNB (OTCMKTS:QNBC) Head-To-Head Survey

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

Insider & Institutional Ownership

0.7% of QNB shares are owned by institutional investors. Comparatively, 30.9% of Oak Valley Bancorp shares are owned by institutional investors. 16.0% of QNB shares are owned by company insiders. Comparatively, 19.3% of Oak Valley Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

QNB pays an annual dividend of $1.48 per share and has a dividend yield of 5.0%. Oak Valley Bancorp pays an annual dividend of $0.45 per share and has a dividend yield of 1.7%. QNB pays out 67.6% of its earnings in the form of a dividend. Oak Valley Bancorp pays out 13.6% 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. Oak Valley Bancorp has raised its dividend for 10 consecutive years.

Profitability

This table compares QNB and Oak Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QNB	10.28%	9.61%	0.50%
Oak Valley Bancorp	28.41%	15.52%	1.36%

Valuation and Earnings

This table compares QNB and Oak Valley Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$73.92 million	1.48	$9.48 million	$2.19	13.56
Oak Valley Bancorp	$87.30 million	2.49	$30.85 million	$3.31	7.87

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

Risk and Volatility

QNB has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Oak Valley Bancorp has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for QNB and Oak Valley Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	N/A
Oak Valley Bancorp	0	0	0	0	N/A

Summary

Oak Valley Bancorp beats QNB on 11 of the 14 factors compared between the two stocks.

About QNB

QNB Corp. operates as the bank holding company for QNB Bank that engages in the provision of commercial and retail banking products, and retail brokerage services. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; credit cards and insurance products; merchant services; ATM and debit card services; and internet and mobile-banking, electronic bill pay, and remote deposit capture services. The company serves other community banks, thrift institutions, credit unions and other non-bank financial organizations, such as mutual fund companies, insurance companies, and brokerage companies. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.

About Oak Valley Bancorp

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including automobile loans, home mortgages, credit lines, and other personal loans. In addition, the company provides online and mobile banking, remote deposit capture, merchant, night depository, extended hours, wire transfer of funds, note collection services, and automated teller machines. The company was incorporated in 1990 and is headquartered in Oakdale, California.