Contrasting LCNB (NASDAQ:LCNB) & Pulaski Financial (PULB)

LCNB (NASDAQ: LCNB) and Pulaski Financial (NASDAQ:PULB) 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, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Volatility and Risk

LCNB has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Pulaski Financial has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares LCNB and Pulaski Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LCNB $54.60 million 3.87 $12.48 million $1.30 16.23
Pulaski Financial N/A N/A N/A $1.17 13.82

LCNB has higher revenue and earnings than Pulaski Financial. Pulaski Financial is trading at a lower price-to-earnings ratio than LCNB, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for LCNB and Pulaski Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCNB 0 2 0 0 2.00
Pulaski Financial 0 0 0 0 N/A

LCNB presently has a consensus target price of $24.00, suggesting a potential upside of 13.74%. Given LCNB’s higher probable upside, equities analysts clearly believe LCNB is more favorable than Pulaski Financial.

Institutional & Insider Ownership

37.4% of LCNB shares are owned by institutional investors. 4.2% of LCNB shares are owned by company 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 LCNB and Pulaski Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LCNB 23.84% 8.88% 0.99%
Pulaski Financial 20.60% 10.31% 0.80%

Dividends

LCNB pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. Pulaski Financial pays an annual dividend of $0.38 per share and has a dividend yield of 2.4%. LCNB pays out 49.2% of its earnings in the form of a dividend. Pulaski Financial pays out 32.5% 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.

Summary

LCNB beats Pulaski Financial on 9 of the 12 factors compared between the two stocks.

About LCNB

LCNB Corp. (LCNB) is a financial holding company. The Company’s subsidiary includes LCNB National Bank (the Bank). The Bank offers commercial and personal banking services. Its services include safe deposit boxes, night depositories, cashier’s checks, utility bill collections, notary public service, mobile banking and other services tailored for both individuals and businesses. Its loan products include commercial and industrial loans, commercial and residential real estate loans, various types of consumer loans and small business administration loans. Its investment portfolio includes securities available-for-sale, such as the United States Treasury notes, the United States Agency notes, Certificates of deposit, and Equity securities. Its deposit services include checking accounts, negotiable order of withdrawal accounts, savings accounts, money market deposit accounts, lifetime checking accounts, individual retirement accounts and certificates of deposit.

About Pulaski Financial

Pulaski Financial Corp. is the holding company for Pulaski Bank, N.A. (the Bank). The Company’s primary assets are its investment in the Bank and cash. It also maintains two subsidiaries that issued trust preferred securities. The Bank provides various financial products and services for businesses and retail customers through its over 10 full-service offices in the St. Louis metropolitan area and residential mortgage loan production offices in the St. Louis, Kansas City, Chicago and Omaha-Council-Bluffs metropolitan areas, mid-Missouri, southwestern Missouri, eastern Kansas, and Lincoln, Nebraska. The Bank is engaged in attracting deposits from individuals and businesses and using these deposits, together with borrowed funds, to originate and retain commercial real estate and commercial and industrial loans within its St. Louis lending market and one- to four-family residential mortgage loans principally within its St. Louis, Kansas City and Omaha-Council Bluffs lending markets.

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