LCNB Corporation (NASDAQ: LCNB) and QCR Holdings (NASDAQ:QCRH) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitabiliy, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for LCNB Corporation and QCR Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCNB Corporation 0 2 0 0 2.00
QCR Holdings 0 0 4 0 3.00

LCNB Corporation currently has a consensus price target of $24.00, suggesting a potential upside of 20.91%. QCR Holdings has a consensus price target of $43.75, suggesting a potential downside of 5.10%. Given LCNB Corporation’s higher probable upside, equities analysts clearly believe LCNB Corporation is more favorable than QCR Holdings.

Volatility and Risk

LCNB Corporation has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, QCR Holdings has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares LCNB Corporation and QCR Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LCNB Corporation $50.43 million 3.94 $12.82 million $1.28 15.51
QCR Holdings $131.81 million 4.61 $32.02 million $2.43 18.97

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

Insider and Institutional Ownership

38.3% of LCNB Corporation shares are owned by institutional investors. Comparatively, 60.6% of QCR Holdings shares are owned by institutional investors. 4.2% of LCNB Corporation shares are owned by company insiders. Comparatively, 8.8% of QCR Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

LCNB Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 3.2%. QCR Holdings pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. LCNB Corporation pays out 50.0% of its earnings in the form of a dividend. QCR Holdings pays out 8.2% 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.

Profitability

This table compares LCNB Corporation and QCR Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LCNB Corporation 23.44% 8.82% 0.97%
QCR Holdings 21.11% 11.34% 0.98%

Summary

QCR Holdings beats LCNB Corporation on 13 of the 16 factors compared between the two stocks.

LCNB Corporation Company Profile

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.

QCR Holdings Company Profile

QCR Holdings, Inc. is a multi-bank holding company. The Company serves the Quad Cities, Cedar Rapids, Waterloo/Cedar Falls, Des Moines/Ankeny and Rockford communities through its banking subsidiaries, Quad City Bank and Trust Company (QCBT), Cedar Rapids Bank and Trust Company (CRBT), Community State Bank (CSB), and Rockford Bank and Trust Company (RB&T), which provide full-service commercial and consumer banking and trust and asset management services. It is also engaged in direct financing lease contracts through m2 Lease Funds, LLC (m2), a subsidiary of QCBT. Its principal business consists of attracting deposits and investing those deposits in loans/leases and securities. The Company and its subsidiaries provide a range of commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals and government agencies. It offers a range of loans, including one- to four-family residential loans and multi-family loans.

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