Head-To-Head Review: Farmers National Banc (NASDAQ:FMNB) & Rhinebeck Bancorp (NASDAQ:RBKB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rhinebeck Bancorp	12.99%	7.20%	0.73%
Farmers National Banc	20.52%	12.03%	1.21%

Earnings & Valuation

This table compares Rhinebeck Bancorp and Farmers National Banc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rhinebeck Bancorp	$75.84 million	2.62	$10.05 million	$0.71	17.87
Farmers National Banc	$223.55 million	4.05	$54.59 million	$1.47	10.39

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

Insider and Institutional Ownership

23.9% of Rhinebeck Bancorp shares are owned by institutional investors. Comparatively, 38.7% of Farmers National Banc shares are owned by institutional investors. 3.0% of Rhinebeck Bancorp shares are owned by insiders. Comparatively, 3.5% of Farmers National Banc shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rhinebeck Bancorp and Farmers National Banc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rhinebeck Bancorp	0	0	1	0	3.00
Farmers National Banc	0	2	1	0	2.33

Farmers National Banc has a consensus price target of $16.00, indicating a potential upside of 4.75%. Given Farmers National Banc’s higher probable upside, analysts plainly believe Farmers National Banc is more favorable than Rhinebeck Bancorp.

Volatility & Risk

Rhinebeck Bancorp has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Summary

Farmers National Banc beats Rhinebeck Bancorp on 11 of the 13 factors compared between the two stocks.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.

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.