Analyzing Farmers National Banc (NASDAQ:FMNB) and Central Plains Bancshares (NASDAQ:CPBI)

Central Plains Bancshares (NASDAQ:CPBI) and Farmers National Banc (NASDAQ:FMNB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

This table compares Central Plains Bancshares and Farmers National Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Plains Bancshares	12.78%	4.39%	0.72%
Farmers National Banc	19.57%	13.49%	1.13%

Analyst Ratings

This is a breakdown of current recommendations for Central Plains Bancshares and Farmers National Banc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Plains Bancshares	0	1	0	0	2.00
Farmers National Banc	0	3	1	0	2.25

Farmers National Banc has a consensus target price of $14.50, suggesting a potential upside of 4.62%. Given Farmers National Banc’s stronger consensus rating and higher possible upside, analysts plainly believe Farmers National Banc is more favorable than Central Plains Bancshares.

Insider and Institutional Ownership

24.3% of Central Plains Bancshares shares are owned by institutional investors. Comparatively, 38.7% of Farmers National Banc shares are owned by institutional investors. 8.6% of Central Plains Bancshares shares are owned by insiders. Comparatively, 3.9% of Farmers National Banc shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Central Plains Bancshares has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Central Plains Bancshares and Farmers National Banc”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Plains Bancshares	$27.31 million	2.58	$3.65 million	$0.97	17.27
Farmers National Banc	$269.45 million	1.94	$45.95 million	$1.44	9.63

Farmers National Banc has higher revenue and earnings than Central Plains Bancshares. Farmers National Banc is trading at a lower price-to-earnings ratio than Central Plains Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

Farmers National Banc beats Central Plains Bancshares on 11 of the 14 factors compared between the two stocks.

About Central Plains Bancshares

Central Plains Bancshares, Inc. focuses on providing various banking products and services to retail customers, and small and medium-sized commercial customers in Nebraska, the United States. It offers checking accounts, savings accounts, and certificate of deposit accounts. The company also provides one- to four-family residential mortgage loans secured by properties, as well as commercial real estate loans, commercial and industrial loans, multi-family residential real estate loans, construction and land development loans, agricultural real estate and non-real estate loans, and consumer loans. In addition, it offers electronic banking services, including mobile banking, on-line banking and bill pay, and electronic funds transfer. The company was incorporated in 2023 and is based in Grand Island, Nebraska.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.