Reviewing QNB (OTCMKTS:QNBC) and FB Financial (NYSE:FBK)

QNB (OTCMKTS:QNBC) and FB Financial (NYSE:FBK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Dividends

QNB pays an annual dividend of $1.52 per share and has a dividend yield of 4.3%. FB Financial pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. QNB pays out 42.9% of its earnings in the form of a dividend. FB Financial pays out 35.5% 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. FB Financial has increased its dividend for 8 consecutive years.

Profitability

This table compares QNB and FB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QNB	13.46%	12.53%	0.72%
FB Financial	11.73%	10.56%	1.28%

Earnings and Valuation

This table compares QNB and FB Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$90.98 million	1.44	$11.45 million	$3.54	9.93
FB Financial	$764.61 million	3.79	$116.04 million	$2.14	25.35

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

Insider and Institutional Ownership

0.7% of QNB shares are held by institutional investors. Comparatively, 65.4% of FB Financial shares are held by institutional investors. 14.5% of QNB shares are held by company insiders. Comparatively, 1.9% of FB Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

QNB has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, FB Financial has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for QNB and FB Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	0.00
FB Financial	0	1	5	0	2.83

FB Financial has a consensus target price of $60.80, suggesting a potential upside of 12.06%. Given FB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe FB Financial is more favorable than QNB.

Summary

FB Financial beats QNB on 12 of the 17 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 FB Financial

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in segments, such as Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as residential mortgage loans. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch network and mortgage banking offices in the southeastern United States; direct-to-consumer internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. The company operates full-service bank branches and limited-service branches locations throughout Tennessee, Nashville, Chattanooga, Knoxville, Memphis, Jackson, Birmingham, Florence, Huntsville, Alabama, Bowling Green, and Kentucky; and mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.