Hudson Valley (NYSE: HVB) and The First of Long Island (NASDAQ:FLIC) are both small-cap financials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Dividends

The First of Long Island pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. Hudson Valley does not pay a dividend. The First of Long Island pays out 40.0% of its earnings in the form of a dividend. The First of Long Island has raised its dividend for 3 consecutive years.

Insider and Institutional Ownership

53.7% of The First of Long Island shares are owned by institutional investors. 4.8% of The First of Long Island shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Hudson Valley and The First of Long Island, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Valley 0 0 0 0 N/A
The First of Long Island 0 1 0 0 2.00

The First of Long Island has a consensus price target of $30.00, indicating a potential upside of 0.33%. Given The First of Long Island’s higher possible upside, analysts clearly believe The First of Long Island is more favorable than Hudson Valley.

Profitability

This table compares Hudson Valley and The First of Long Island’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudson Valley 17.98% 6.34% 0.61%
The First of Long Island 28.36% 10.81% 0.96%

Earnings & Valuation

This table compares Hudson Valley and The First of Long Island’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hudson Valley N/A N/A N/A $0.55 51.29
The First of Long Island $113.50 million 6.49 $30.88 million $1.50 19.93

The First of Long Island has higher revenue and earnings than Hudson Valley. The First of Long Island is trading at a lower price-to-earnings ratio than Hudson Valley, indicating that it is currently the more affordable of the two stocks.

Summary

The First of Long Island beats Hudson Valley on 10 of the 11 factors compared between the two stocks.

About Hudson Valley

Hudson Valley Holding Corp. (Hudson Valley) is a bank holding company. The Company provides financial services through its wholly owned subsidiary, Hudson Valley Bank, N.A. (HVB or the Bank), a national banking association. HVB has 17 branch offices in Westchester County, New York, four in Manhattan, New York, four in Bronx County, New York, two in Rockland County, New York, and one in Kings County, New York. The Company provides asset-based lending products through a wholly owned subsidiary of HVB, HVB Capital Credit LLC. The Company provides equipment loan and lease financing through a wholly owned subsidiary of HVB, HVB Equipment Capital, LLC. The Company’s principal customers are businesses, professionals, municipalities, not-for-profit organizations and individuals. In addition, the Company also offers a software application designed to meet the administrative needs of bankruptcy trustees through a marketing and licensing agreement with the application vendor.

About The First of Long Island

The First of Long Island Corporation is a one-bank holding company. The Company provides financial services through its subsidiary, The First National Bank of Long Island (the Bank). Its services include account reconciliation services, bank by mail, personal money orders, bill payment, remote deposit, cash management services, safe deposit boxes, collection services securities transactions, controlled disbursement accounts, signature guarantee services, drive-through banking, merchant credit card services, and investment management and trust services. Its loan portfolio consists of loans to borrowers on Long Island and in the boroughs of New York City, and its real estate loans are secured by properties located in those areas. It has an Investment Management Division that provides investment management, pension trust, personal trust, estate and custody services. Additionally, the Bank has two commercial banking branches in Manhattan.

Receive News & Ratings for Hudson Valley Holding Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hudson Valley Holding Corp. and related companies with MarketBeat.com's FREE daily email newsletter.