Fidelity D&D Bancorp (NASDAQ:FDBC) and QNB (OTCMKTS:QNBC) Head to Head Analysis

QNB (OTCMKTS:QNBC) and Fidelity D&D Bancorp (NASDAQ:FDBC) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Institutional and Insider Ownership

0.7% of QNB shares are owned by institutional investors. Comparatively, 20.1% of Fidelity D&D Bancorp shares are owned by institutional investors. 14.5% of QNB shares are owned by insiders. Comparatively, 21.0% of Fidelity D&D Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

QNB pays an annual dividend of $1.52 per share and has a dividend yield of 4.0%. Fidelity D&D Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 3.6%. QNB pays out 40.3% of its earnings in the form of a dividend. Fidelity D&D Bancorp pays out 35.3% 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. Fidelity D&D Bancorp has raised its dividend for 10 consecutive years.

Valuation & Earnings

This table compares QNB and Fidelity D&D Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$99.60 million	1.42	$14.09 million	$3.77	10.02
Fidelity D&D Bancorp	$140.40 million	1.94	$28.20 million	$4.87	9.72

Fidelity D&D Bancorp has higher revenue and earnings than QNB. Fidelity D&D Bancorp is trading at a lower price-to-earnings ratio than QNB, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

QNB has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Fidelity D&D Bancorp has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares QNB and Fidelity D&D Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QNB	14.15%	13.20%	0.80%
Fidelity D&D Bancorp	20.08%	12.84%	1.04%

Analyst Recommendations

This is a summary of current ratings and price targets for QNB and Fidelity D&D Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	0.00
Fidelity D&D Bancorp	0	1	0	0	2.00

Summary

Fidelity D&D Bancorp beats QNB on 12 of the 15 factors compared between the two stocks.

About QNB

QNB Corp. operates as the bank holding company for QNB Bank that engages in the provision of commercial and retail banking products, and retail brokerage services. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; credit cards and insurance products; merchant services; ATM and debit card services; and internet and mobile-banking, electronic bill pay, and remote deposit capture services. The company serves other community banks, thrift institutions, credit unions and other non-bank financial organizations, such as mutual fund companies, insurance companies, and brokerage companies. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.

About Fidelity D&D Bancorp

Fidelity D&D Bancorp, Inc. is a holding company, which engages in the provision of commercial banking services. It operates through the following segments: Commercial and Industrial, Commercial Real Estate, Consumer, and Residential Real Estate. The Commercial and Industrial segment refers to identified historic and/or the projected cash flows of the borrower and secondarily to the underlying collateral provided by the borrower. The Commercial Real Estate segment offers finances purchase of real estate, refinance existing obligations, and/or to provide capital. The Consumer segment includes home equity installment loans and lines of credit. The Residential Real Estate segment operates as a secured first lien position of the borrower’s residential real estate. The company was founded in 1902 and is headquartered in Dunmore, PA.