Reviewing FNCB Bancorp (NASDAQ:FNCB) and F.N.B. (NYSE:FNB)

FNCB Bancorp (NASDAQ:FNCB) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Dividends

FNCB Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 5.9%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.7%. FNCB Bancorp pays out 51.4% of its earnings in the form of a dividend. F.N.B. pays out 38.7% 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. FNCB Bancorp has increased its dividend for 8 consecutive years. FNCB Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

13.3% of FNCB Bancorp shares are held by institutional investors. Comparatively, 79.3% of F.N.B. shares are held by institutional investors. 18.0% of FNCB Bancorp shares are held by company insiders. Comparatively, 1.2% of F.N.B. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for FNCB Bancorp and F.N.B., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FNCB Bancorp	0	0	0	0	N/A
F.N.B.	0	0	4	0	3.00

F.N.B. has a consensus target price of $15.00, suggesting a potential upside of 15.56%. Given F.N.B.’s higher probable upside, analysts clearly believe F.N.B. is more favorable than FNCB Bancorp.

Profitability

This table compares FNCB Bancorp and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FNCB Bancorp	14.92%	10.77%	0.75%
F.N.B.	19.73%	9.51%	1.22%

Risk & Volatility

FNCB Bancorp has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Valuation & Earnings

This table compares FNCB Bancorp and F.N.B.’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FNCB Bancorp	$88.67 million	1.36	$12.98 million	$0.70	8.69
F.N.B.	$2.23 billion	2.10	$485.00 million	$1.24	10.47

F.N.B. has higher revenue and earnings than FNCB Bancorp. FNCB Bancorp is trading at a lower price-to-earnings ratio than F.N.B., indicating that it is currently the more affordable of the two stocks.

Summary

F.N.B. beats FNCB Bancorp on 12 of the 16 factors compared between the two stocks.

About FNCB Bancorp

FNCB Bancorp, Inc. operates as the bank holding company for FNCB Bank that provides retail and commercial banking services to individuals, businesses, local governments, and municipalities in the United States. The company offers deposit products, such as savings account, money market, checking accounts, and certificate of deposit. It also provides residential mortgage loans, and home equity term loans and lines of credit; construction, land acquisition, and development loans; commercial real estate loans; commercial and industrial loans which includes lines of credit, dealer floor plan lines, equipment loans, vehicle loans, and term loans; commercial equipment financing; consumer loans, such as secured and unsecured installment loans, direct new and used automobile financing, personal lines of credit, and overdraft protection loan; state and political subdivision loans and leases; and purchased loans. In addition, the company offers debit cards and banking through online, mobile, and telephone banking, as well as wealth management services, remote deposit capture, merchant services, treasury services, and purchasing card services. The company was formerly known as First National Community Bancorp, Inc. and changed its name to FNCB Bancorp, Inc. in October 2016. FNCB Bancorp, Inc. was founded in 1910 and is headquartered in Dunmore, Pennsylvania.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.