Two small-cap finance companies, Princeton Bancorp and QNB Corp, are currently attracting investor attention. This article compares their key metrics, including dividends, risk factors, institutional ownership, and overall profitability, to help determine which firm represents a better investment opportunity.
Analyst Ratings and Recommendations
As of now, Princeton Bancorp holds a consensus price target of $37.50, which implies a potential upside of approximately 2.97%. Analysts are more optimistic about Princeton, reflecting a stronger consensus rating compared to QNB. This suggests that equities research analysts view Princeton Bancorp as the more favorable option for investors.
Dividends and Profitability
When it comes to dividends, Princeton Bancorp offers an annual payment of $1.40 per share, resulting in a yield of 3.8%. In contrast, QNB pays $1.52 per share, translating to a yield of 4.0%. Notably, Princeton Bancorp distributes 51.5% of its earnings as dividends, whereas QNB has a lower payout ratio of 40.3%. While both companies maintain healthy payout ratios, QNB emerges as the stronger dividend stock due to its higher yield and lower payout ratio.
In terms of profitability, Princeton Bancorp has a higher revenue and earnings per share (EPS) than QNB. However, QNB trades at a lower price-to-earnings ratio, indicating it may offer a more affordable investment option.
Risk Assessment and Ownership Structure
Risk levels between the two companies reveal Princeton Bancorp with a beta of 0.53, indicating its share price is 47% less volatile than the S&P 500. Meanwhile, QNB has a beta of 0.45, marking its share price 55% less volatile than the benchmark. This suggests that both companies carry lower risk compared to broader market indices.
Institutional ownership also varies significantly. Approximately 43.4% of Princeton Bancorp’s shares are held by institutional investors, while QNB only has 0.7% of its shares owned by such entities. Insider ownership stands at 21.9% for Princeton Bancorp, compared to 14.5% for QNB. High institutional ownership often indicates confidence among larger investors regarding long-term growth potential.
Company Overviews
Princeton Bancorp, founded in 2007 and headquartered in Princeton, New Jersey, operates as the holding company for The Bank of Princeton. It provides various banking services, including checking accounts, mortgages, and credit cards, alongside modern online banking features.
QNB Corp, established in 1877 and based in Quakertown, Pennsylvania, is the holding company for QNB Bank. It offers a range of commercial and retail banking services, along with brokerage and advisory services.
Overall, Princeton Bancorp outperforms QNB across 11 of the 17 factors analyzed. Investors should consider these insights when evaluating their investment strategies in the finance sector.
