Eagle Bancorp (NASDAQ:EGBN) & Fidelity D&D Bancorp (NASDAQ:FDBC) Financial Contrast

Eagle Bancorp (NASDAQ:EGBN) and Fidelity D&D Bancorp (NASDAQ:FDBC) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

Eagle Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Fidelity D&D Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 3.9%. Eagle Bancorp pays out -1.0% of its earnings in the form of a dividend. Fidelity D&D Bancorp pays out 38.1% 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. Fidelity D&D Bancorp has raised its dividend for 10 consecutive years. Fidelity D&D Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Eagle Bancorp and Fidelity D&D Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Bancorp	-18.65%	-10.07%	-1.10%
Fidelity D&D Bancorp	19.03%	12.10%	0.97%

Earnings and Valuation

This table compares Eagle Bancorp and Fidelity D&D Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Bancorp	$707.50 million	0.98	-$47.03 million	($3.96)	-5.74
Fidelity D&D Bancorp	$88.21 million	2.87	$20.79 million	$4.51	9.75

Fidelity D&D Bancorp has lower revenue, but higher earnings than Eagle Bancorp. Eagle Bancorp is trading at a lower price-to-earnings ratio than Fidelity D&D Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Eagle Bancorp has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Fidelity D&D Bancorp has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Eagle Bancorp and Fidelity D&D Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Bancorp	1	4	1	0	2.00
Fidelity D&D Bancorp	0	1	0	0	2.00

Eagle Bancorp presently has a consensus price target of $21.25, indicating a potential downside of 6.47%. Given Eagle Bancorp’s higher probable upside, analysts plainly believe Eagle Bancorp is more favorable than Fidelity D&D Bancorp.

Institutional & Insider Ownership

78.0% of Eagle Bancorp shares are held by institutional investors. Comparatively, 20.0% of Fidelity D&D Bancorp shares are held by institutional investors. 3.4% of Eagle Bancorp shares are held by insiders. Comparatively, 21.0% of Fidelity D&D Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Fidelity D&D Bancorp beats Eagle Bancorp on 10 of the 16 factors compared between the two stocks.

About Eagle Bancorp

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; checking and saving accounts; and other deposit services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program; and treasury management services. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, and non-profit organizations and associations, as well as investors. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.

About Fidelity D&D Bancorp

Fidelity D&D Bancorp, Inc. is a holding company, which engages in the provision of commercial banking services. It operates through the following segments: Commercial and Industrial, Commercial Real Estate, Consumer, and Residential Real Estate. The Commercial and Industrial segment refers to identified historic and/or the projected cash flows of the borrower and secondarily to the underlying collateral provided by the borrower. The Commercial Real Estate segment offers finances purchase of real estate, refinance existing obligations, and/or to provide capital. The Consumer segment includes home equity installment loans and lines of credit. The Residential Real Estate segment operates as a secured first lien position of the borrower’s residential real estate. The company was founded in 1902 and is headquartered in Dunmore, PA.