Bank of New York Mellon (NYSE:BK) and QNB (OTCMKTS:QNBC) Head to Head Survey

QNB (OTCMKTS:QNBC) and Bank of New York Mellon (NYSE:BK) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Dividends

QNB pays an annual dividend of $1.48 per share and has a dividend yield of 6.2%. Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 3.0%. QNB pays out 56.3% of its earnings in the form of a dividend. Bank of New York Mellon pays out 42.3% 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. Bank of New York Mellon has raised its dividend for 13 consecutive years.

Risk & Volatility

QNB has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Bank of New York Mellon has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Insider & Institutional Ownership

0.7% of QNB shares are owned by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are owned by institutional investors. 12.3% of QNB shares are owned by company insiders. Comparatively, 0.1% of Bank of New York Mellon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares QNB and Bank of New York Mellon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QNB	12.83%	11.50%	0.57%
Bank of New York Mellon	10.01%	11.63%	1.01%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for QNB and Bank of New York Mellon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QNB	0	0	0	0	N/A
Bank of New York Mellon	0	5	3	0	2.38

Bank of New York Mellon has a consensus target price of $57.25, suggesting a potential upside of 3.40%. Given Bank of New York Mellon’s higher probable upside, analysts plainly believe Bank of New York Mellon is more favorable than QNB.

Valuation & Earnings

This table compares QNB and Bank of New York Mellon’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QNB	$73.92 million	1.18	$9.48 million	$2.63	9.03
Bank of New York Mellon	$17.29 billion	2.41	$3.29 billion	$3.97	13.95

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

Summary

Bank of New York Mellon beats QNB on 13 of the 16 factors compared between the two stocks.

About QNB

QNB Corp. operates as the bank holding company for QNB Bank that provides commercial and retail banking products and 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 Bank of New York Mellon

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, and data analytics. This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors. The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services. This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services. The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services. The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.