Univest Corporation of Pennsylvania (NASDAQ:UVSP) versus Farmers National Banc (NASDAQ:FMNB) Financial Survey

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

Insider & Institutional Ownership

38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are held by institutional investors. 3.5% of Farmers National Banc shares are held by insiders. Comparatively, 1.8% of Univest Corporation of Pennsylvania shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Farmers National Banc and Univest Corporation of Pennsylvania’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	19.60%	12.73%	1.31%
Univest Corporation of Pennsylvania	17.95%	9.94%	1.13%

Dividends

Farmers National Banc pays an annual dividend of $0.72 per share and has a dividend yield of 4.7%. Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Farmers National Banc pays out 51.8% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 27.5% 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. Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Farmers National Banc and Univest Corporation of Pennsylvania”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$241.69 million	3.79	$54.59 million	$1.39	11.12
Univest Corporation of Pennsylvania	$346.41 million	3.19	$90.76 million	$3.35	12.16

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

Volatility & Risk

Farmers National Banc has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Farmers National Banc and Univest Corporation of Pennsylvania, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	0	3	1	0	2.25
Univest Corporation of Pennsylvania	0	3	0	1	2.50

Farmers National Banc currently has a consensus price target of $17.00, suggesting a potential upside of 9.96%. Univest Corporation of Pennsylvania has a consensus price target of $46.00, suggesting a potential upside of 12.91%. Given Univest Corporation of Pennsylvania’s stronger consensus rating and higher possible upside, analysts plainly believe Univest Corporation of Pennsylvania is more favorable than Farmers National Banc.

Summary

Univest Corporation of Pennsylvania beats Farmers National Banc on 10 of the 18 factors compared between the two stocks.

About Farmers National Banc

Farmers National Banc Corp. is a bank holding company headquartered in Canfield, Ohio. Its principal subsidiary, Farmers National Bank, provides banking services to individuals, businesses and organizations. The company offers deposit accounts, commercial and consumer lending, mortgage services and digital banking. Through affiliated businesses, it also provides trust and wealth management services, including fiduciary and investment services, as well as insurance products. Founded in 1887, Farmers National Banc serves communities in Ohio and Pennsylvania.

About Univest Corporation of Pennsylvania

Univest Corporation of Pennsylvania is a financial services holding company headquartered in Souderton, Pennsylvania. Its history dates to 1876, when the community bank that became Univest was established in the area. Through Univest Bank and Trust Co. and other subsidiaries, the company provides commercial and consumer banking, mortgage lending, wealth management and trust services, and insurance. Its offerings serve individuals, businesses, nonprofits, and other organizations. Univest primarily serves southeastern Pennsylvania, including communities in the greater Philadelphia region and surrounding areas.