Head-To-Head Review: Quaint Oak Bancorp (OTCMKTS:QNTO) and Univest Corporation of Pennsylvania (NASDAQ:UVSP)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quaint Oak Bancorp	4.06%	3.86%	0.30%
Univest Corporation of Pennsylvania	16.94%	9.63%	1.09%

Volatility and Risk

Quaint Oak Bancorp has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Earnings & Valuation

This table compares Quaint Oak Bancorp and Univest Corporation of Pennsylvania”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaint Oak Bancorp	$51.59 million	0.45	$2.80 million	$0.76	11.64
Univest Corporation of Pennsylvania	$320.29 million	2.72	$75.93 million	$3.00	10.09

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Quaint Oak Bancorp and Univest Corporation of Pennsylvania, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaint Oak Bancorp	0	0	0	0	0.00
Univest Corporation of Pennsylvania	0	2	1	0	2.33

Univest Corporation of Pennsylvania has a consensus target price of $32.50, suggesting a potential upside of 7.37%. Given Univest Corporation of Pennsylvania’s stronger consensus rating and higher possible upside, analysts clearly believe Univest Corporation of Pennsylvania is more favorable than Quaint Oak Bancorp.

Insider & Institutional Ownership

8.6% of Quaint Oak Bancorp shares are owned by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. 31.3% of Quaint Oak Bancorp shares are owned by company insiders. Comparatively, 1.7% of Univest Corporation of Pennsylvania shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.8%. Univest Corporation of Pennsylvania pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Quaint Oak Bancorp pays out 21.1% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 29.3% 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. Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years. Univest Corporation of Pennsylvania is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Univest Corporation of Pennsylvania beats Quaint Oak Bancorp on 14 of the 17 factors compared between the two stocks.

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.

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.