Financial Analysis: Farmers National Banc (NASDAQ:FMNB) versus CNB Financial (NASDAQ:CCNE)

Farmers National Banc (NASDAQ:FMNB) and CNB Financial (NASDAQ:CCNE) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Farmers National Banc and CNB Financial’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$255.20 million	1.79	$49.93 million	$1.34	9.08
CNB Financial	$327.03 million	1.23	$58.02 million	$2.56	7.46

CNB Financial has higher revenue and earnings than Farmers National Banc. CNB Financial is trading at a lower price-to-earnings ratio than Farmers National Banc, indicating that it is currently the more affordable of the two stocks.

Dividends

Farmers National Banc pays an annual dividend of $0.68 per share and has a dividend yield of 5.6%. CNB Financial pays an annual dividend of $0.70 per share and has a dividend yield of 3.7%. Farmers National Banc pays out 50.7% of its earnings in the form of a dividend. CNB Financial pays out 27.3% 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.

Institutional and Insider Ownership

38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 52.4% of CNB Financial shares are held by institutional investors. 4.0% of Farmers National Banc shares are held by insiders. Comparatively, 2.9% of CNB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Farmers National Banc and CNB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	19.57%	16.91%	1.22%
CNB Financial	17.74%	11.69%	1.02%

Analyst Ratings

This is a summary of recent recommendations and price targets for Farmers National Banc and CNB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	0	2	1	0	2.33
CNB Financial	0	0	0	0	N/A

Farmers National Banc presently has a consensus target price of $15.33, suggesting a potential upside of 25.99%. Given Farmers National Banc’s higher possible upside, research analysts clearly believe Farmers National Banc is more favorable than CNB Financial.

Risk & Volatility

Farmers National Banc has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Summary

Farmers National Banc beats CNB Financial on 10 of the 15 factors compared between the two stocks.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.

About CNB Financial

CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. The company accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. It also provides private banking; and wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, the company invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.