Head to Head Comparison: CU Bancorp (CUNB) and Farmers National Banc (FMNB)

CU Bancorp (NASDAQ: CUNB) and Farmers National Banc (NASDAQ:FMNB) are both small-cap banks – nec companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Dividends

Farmers National Banc pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. CU Bancorp does not pay a dividend. Farmers National Banc pays out 28.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares CU Bancorp and Farmers National Banc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CU Bancorp N/A N/A N/A $1.67 22.46
Farmers National Banc $95.74 million 4.43 $20.55 million $0.84 18.33

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

Institutional and Insider Ownership

56.4% of CU Bancorp shares are owned by institutional investors. Comparatively, 34.5% of Farmers National Banc shares are owned by institutional investors. 9.1% of CU Bancorp shares are owned by company insiders. Comparatively, 7.8% of Farmers National Banc 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CU Bancorp and Farmers National Banc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CU Bancorp 0 1 4 0 2.80
Farmers National Banc 0 1 0 0 2.00

CU Bancorp currently has a consensus target price of $41.33, indicating a potential upside of 10.22%. Farmers National Banc has a consensus target price of $17.00, indicating a potential upside of 10.39%. Given Farmers National Banc’s higher possible upside, analysts plainly believe Farmers National Banc is more favorable than CU Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
CU Bancorp 29.03% 10.78% 1.21%
Farmers National Banc 22.39% 10.35% 1.13%

Summary

CU Bancorp beats Farmers National Banc on 10 of the 13 factors compared between the two stocks.

About CU Bancorp

CU Bancorp is the bank holding company of California United Bank (the Bank). The Bank is a full-service commercial bank offering a range of banking products and services designed for small and medium-sized businesses, non-profit organizations, business owners and entrepreneurs, and the professional community. The Bank provides a range of deposit products, such as savings accounts, certificates of deposit and money market accounts, and loan products. The Bank also provides cash management services, online banking, commercial credit cards and other primarily business-oriented products. Its other services include commercial and stand-by letters of credit, domestic and international wire transfers, on site Automated Teller Machines (ATMs), and Visa Debit Cards and ATM cards. It also provides bank-by-mail services, courier services, armored transport, lock box, cash vault, cash management services, telephone banking, night depositories, commercial credit cards and international services.

About Farmers National Banc

Farmers National Banc Corp. is a one-bank holding company. The Company’s principal business consists of owning and supervising its subsidiaries. The Company operates through tree segments: the Bank, Trust and Retirement Consulting. The Company operates principally through its subsidiaries, The Farmers National Bank of Canfield (the Bank or Farmers Bank), Farmers Trust Company (Trust or Farmers Trust), National Associates, Inc. (NAI) and Farmers National Captive, Inc. (Captive). The Bank’s subsidiaries include Farmers National Insurance, LLC (Farmers Insurance) and Farmers of Canfield Investment Co. (Farmers Investments). The banking operation offers loans, investments and deposits; the trust operations provide trust services, and the retirement consulting operations offer consulting services. The Company and its subsidiaries operate in the domestic banking, trust, retirement consulting, insurance and financial management industries.

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

Leave a Reply