Critical Analysis: QNB (OTCMKTS:QNBC) versus Chain Bridge Bancorp (NYSE:CBNA)

QNB (OTCMKTS:QNBC) and Chain Bridge Bancorp (NYSE:CBNA) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares QNB and Chain Bridge Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QNB	14.26%	17.60%	1.13%
Chain Bridge Bancorp	35.09%	13.07%	1.31%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QNB and Chain Bridge Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	0.00
Chain Bridge Bancorp	1	4	0	0	1.80

Chain Bridge Bancorp has a consensus price target of $38.50, indicating a potential upside of 2.25%. Given Chain Bridge Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Chain Bridge Bancorp is more favorable than QNB.

Institutional & Insider Ownership

0.7% of QNB shares are owned by institutional investors. 14.5% of QNB shares are owned by insiders. Comparatively, 25.4% of Chain Bridge Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares QNB and Chain Bridge Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$99.60 million	2.19	$14.09 million	$3.81	11.52
Chain Bridge Bancorp	$59.32 million	4.16	$20.24 million	$3.31	11.37

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

Risk & Volatility

QNB has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Chain Bridge Bancorp has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Summary

Chain Bridge Bancorp beats QNB on 8 of the 13 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 Chain Bridge Bancorp

Chain Bridge Bancorp, Inc. operates as a Delaware-chartered bank holding company for Chain Bridge Bank, National Association that provides commercial and personal banking, and trust services in the United States. Its deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts. The company’s loan portfolio comprises of residential and commercial real estate loans, commercial loans, and consumer loans. It also provides treasury management, payments, trusts and estate administration, wealth management, and asset custody services. The company was incorporated in 2006 and is headquartered in McLean, Virginia.