Contrasting Equitable Financial (OTCMKTS:EQFN) & Farmers National Banc (NASDAQ:FMNB)

Farmers National Banc (NASDAQ:FMNB) and Equitable Financial (OTCMKTS:EQFN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Earnings and Valuation

This table compares Farmers National Banc and Equitable Financial”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	$279.92 million	1.79	$54.59 million	$1.45	9.16
Equitable Financial	$33.95 million	1.17	$3.44 million	$1.31	12.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	19.50%	13.34%	1.14%
Equitable Financial	9.70%	6.57%	0.64%

Institutional & Insider Ownership

38.7% of Farmers National Banc shares are owned by institutional investors. Comparatively, 7.2% of Equitable Financial shares are owned by institutional investors. 4.0% of Farmers National Banc shares are owned by company insiders. Comparatively, 11.3% of Equitable Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Farmers National Banc has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Equitable Financial has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Farmers National Banc and Equitable Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	1	2	1	0	2.00
Equitable Financial	0	0	0	0	0.00

Farmers National Banc presently has a consensus target price of $14.50, suggesting a potential upside of 9.22%. Given Farmers National Banc’s stronger consensus rating and higher probable upside, research analysts plainly believe Farmers National Banc is more favorable than Equitable Financial.

Summary

Farmers National Banc beats Equitable Financial on 12 of the 14 factors compared between the two stocks.

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.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.