QNB (OTCMKTS:QNBC – Get Free Report) and Hanover Bancorp (NASDAQ:HNVR – Get Free Report) 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
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.
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