CNB Financial (NASDAQ:CCNE) vs. QNB (OTCMKTS:QNBC) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QNB	14.15%	12.77%	0.80%
CNB Financial	15.29%	11.10%	1.04%

Dividends

QNB pays an annual dividend of $1.56 per share and has a dividend yield of 3.9%. CNB Financial pays an annual dividend of $0.76 per share and has a dividend yield of 2.7%. QNB pays out 41.4% of its earnings in the form of a dividend. CNB Financial pays out 31.3% 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. CNB Financial has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for QNB and CNB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	0.00
CNB Financial	0	1	2	1	3.00

CNB Financial has a consensus price target of $32.00, indicating a potential upside of 12.80%. Given CNB Financial’s stronger consensus rating and higher possible upside, analysts plainly believe CNB Financial is more favorable than QNB.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$99.60 million	1.50	$14.09 million	$3.77	10.48
CNB Financial	$277.02 million	3.04	$66.13 million	$2.43	11.67

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

Insider & Institutional Ownership

0.7% of QNB shares are owned by institutional investors. Comparatively, 52.3% of CNB Financial shares are owned by institutional investors. 14.5% of QNB shares are owned by company insiders. Comparatively, 2.9% of CNB Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

QNB has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Summary

CNB Financial beats QNB on 14 of the 18 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 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.