Comparing Farmers National Banc (NASDAQ:FMNB) and Rhinebeck Bancorp (NASDAQ:RBKB)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Farmers National Banc and Rhinebeck Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	0	2	1	0	2.33
Rhinebeck Bancorp	0	0	1	0	3.00

Farmers National Banc currently has a consensus price target of $16.00, suggesting a potential upside of 4.30%. Given Farmers National Banc’s higher probable upside, research analysts plainly believe Farmers National Banc is more favorable than Rhinebeck Bancorp.

Institutional and Insider Ownership

38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 23.9% of Rhinebeck Bancorp shares are held by institutional investors. 3.5% of Farmers National Banc shares are held by company insiders. Comparatively, 3.0% of Rhinebeck Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Farmers National Banc and Rhinebeck Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$279.92 million	3.25	$54.59 million	$1.47	10.44
Rhinebeck Bancorp	$75.84 million	2.71	$10.05 million	$0.71	18.52

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

Risk & Volatility

Farmers National Banc has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Rhinebeck Bancorp has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.

Profitability

This table compares Farmers National Banc and Rhinebeck Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	20.52%	12.03%	1.21%
Rhinebeck Bancorp	12.99%	7.20%	0.73%

Summary

Farmers National Banc beats Rhinebeck Bancorp on 11 of the 13 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 Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.