Head to Head Review: Quaint Oak Bancorp (OTCMKTS:QNTO) vs. Citizens Financial Group (NYSE:CFG)

Citizens Financial Group (NYSE:CFG) and Quaint Oak Bancorp (OTCMKTS:QNTO) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Volatility and Risk

Citizens Financial Group has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Quaint Oak Bancorp has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Earnings and Valuation

This table compares Citizens Financial Group and Quaint Oak Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens Financial Group	$7.85 billion	2.82	$1.51 billion	$3.29	15.61
Quaint Oak Bancorp	$51.59 million	0.52	$2.80 million	$0.76	13.29

Citizens Financial Group has higher revenue and earnings than Quaint Oak Bancorp. Quaint Oak Bancorp is trading at a lower price-to-earnings ratio than Citizens Financial Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Citizens Financial Group and Quaint Oak Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens Financial Group	0	3	14	2	2.95
Quaint Oak Bancorp	0	0	0	0	0.00

Citizens Financial Group presently has a consensus target price of $52.00, suggesting a potential upside of 1.26%. Given Citizens Financial Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Citizens Financial Group is more favorable than Quaint Oak Bancorp.

Profitability

This table compares Citizens Financial Group and Quaint Oak Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens Financial Group	13.26%	6.94%	0.72%
Quaint Oak Bancorp	4.06%	3.86%	0.30%

Dividends

Citizens Financial Group pays an annual dividend of $1.68 per share and has a dividend yield of 3.3%. Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Citizens Financial Group pays out 51.1% of its earnings in the form of a dividend. Quaint Oak Bancorp pays out 21.1% 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.

Insider and Institutional Ownership

94.9% of Citizens Financial Group shares are held by institutional investors. Comparatively, 8.6% of Quaint Oak Bancorp shares are held by institutional investors. 0.7% of Citizens Financial Group shares are held by insiders. Comparatively, 31.3% of Quaint Oak Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Citizens Financial Group beats Quaint Oak Bancorp on 15 of the 17 factors compared between the two stocks.

About Citizens Financial Group

Citizens Financial Group, Inc. operates as the bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves corporate banking, healthcare, technology, asset finance, franchise finance, leasing, asset-based lending, commercial real estate, mid-corporate, and private equity sponsor industries. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

About Quaint Oak Bancorp

Quaint Oak Bancorp, Inc. operates as the holding company for Quaint Oak Bank that provides banking products and services in Pennsylvania. It offers various deposit products, including money market accounts, certificates of deposit, interest and non-interest-bearing checking accounts for businesses and consumers, and savings accounts. The company also provides residential and commercial mortgage loans, construction loans, commercial business loans, home equity loans, and lines of credit; mortgage banking, real estate sales, title abstract, and insurance services; and multi-state equipment financing services. It serves its customers through offices, as well as correspondence, telephone, and online banking. Quaint Oak Bancorp, Inc. was incorporated in 1926 and is headquartered in Southampton, Pennsylvania.