QNB (OTCMKTS:QNBC) and Univest Corporation of Pennsylvania (NASDAQ:UVSP) Critical Comparison

QNB (OTCMKTS:QNBC) and Univest Corporation of Pennsylvania (NASDAQ:UVSP) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QNB	14.26%	17.60%	1.13%
Univest Corporation of Pennsylvania	18.25%	10.19%	1.15%

Earnings and Valuation

This table compares QNB and Univest Corporation of Pennsylvania”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$99.60 million	2.19	$14.09 million	$3.81	11.52
Univest Corporation of Pennsylvania	$336.31 million	3.12	$90.76 million	$3.33	11.30

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

Dividends

QNB pays an annual dividend of $1.56 per share and has a dividend yield of 3.6%. Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. QNB pays out 40.9% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 27.6% 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.

Institutional & Insider Ownership

0.7% of QNB shares are held by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are held by institutional investors. 14.5% of QNB 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 will outperform the market over the long term.

Risk & Volatility

QNB has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for QNB and Univest Corporation of Pennsylvania, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	0.00
Univest Corporation of Pennsylvania	0	3	1	0	2.25

Univest Corporation of Pennsylvania has a consensus price target of $37.00, indicating a potential downside of 1.67%. Given Univest Corporation of Pennsylvania’s stronger consensus rating and higher possible upside, analysts clearly believe Univest Corporation of Pennsylvania is more favorable than QNB.

Summary

Univest Corporation of Pennsylvania beats QNB on 12 of the 17 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 Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.