Hanover Bancorp (NASDAQ:HNVR) vs. QNB (OTCMKTS:QNBC) Head to Head Comparison

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for QNB and Hanover Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	N/A
Hanover Bancorp	0	0	1	0	3.00

Hanover Bancorp has a consensus price target of $21.00, indicating a potential upside of 28.91%. Given Hanover Bancorp’s higher probable upside, analysts clearly believe Hanover Bancorp is more favorable than QNB.

Volatility and Risk

QNB has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Hanover Bancorp has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500.

Dividends

QNB pays an annual dividend of $1.48 per share and has a dividend yield of 6.4%. Hanover Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. QNB pays out 67.6% of its earnings in the form of a dividend. Hanover Bancorp pays out 20.4% 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.

Insider & Institutional Ownership

0.7% of QNB shares are held by institutional investors. Comparatively, 15.0% of Hanover Bancorp shares are held by institutional investors. 16.0% of QNB shares are held by insiders. Comparatively, 24.8% of Hanover Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QNB	10.12%	9.38%	0.47%
Hanover Bancorp	10.82%	7.62%	0.64%

Valuation & Earnings

This table compares QNB and Hanover Bancorp’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$73.92 million	1.16	$9.48 million	$2.19	10.64
Hanover Bancorp	$113.89 million	1.04	$15.16 million	$1.96	8.31

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

Summary

Hanover Bancorp beats QNB on 9 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 Hanover Bancorp

Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.