Farmers National Banc (NASDAQ:FMNB – Get Free Report) and United Bancorp (NASDAQ:UBCP – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Risk & Volatility
Farmers National Banc has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, United Bancorp has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
Insider & Institutional Ownership
38.7% of Farmers National Banc shares are owned by institutional investors. Comparatively, 15.4% of United Bancorp shares are owned by institutional investors. 3.9% of Farmers National Banc shares are owned by insiders. Comparatively, 12.9% of United Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Profitability
This table compares Farmers National Banc and United Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Farmers National Banc | 19.50% | 13.34% | 1.14% |
| United Bancorp | 16.32% | 12.44% | 0.91% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Farmers National Banc and United Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Farmers National Banc | 1 | 2 | 1 | 0 | 2.00 |
| United Bancorp | 0 | 1 | 0 | 0 | 2.00 |
Farmers National Banc currently has a consensus target price of $14.50, indicating a potential upside of 10.43%. Given Farmers National Banc’s higher probable upside, analysts clearly believe Farmers National Banc is more favorable than United Bancorp.
Earnings & Valuation
This table compares Farmers National Banc and United Bancorp”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Farmers National Banc | $279.92 million | 1.77 | $54.59 million | $1.45 | 9.06 |
| United Bancorp | $47.51 million | 1.81 | $7.75 million | $1.34 | 11.12 |
Farmers National Banc has higher revenue and earnings than United Bancorp. Farmers National Banc is trading at a lower price-to-earnings ratio than United Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
Farmers National Banc beats United Bancorp on 12 of the 16 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 United Bancorp
United Bancorp, Inc. operates as the bank holding company for Unified Bank that provides commercial and retail banking services in Ohio. The company provides range of banking and financial services, which includes accepting demand, savings, and time deposits. It also offers commercial, real estate and consumer loans. United Bancorp, Inc. was founded in 1902 and is headquartered in Martins Ferry, Ohio.
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