Fidelity D&D Bancorp (NASDAQ:FDBC – Get Free Report) and Eagle Bancorp (NASDAQ:EGBN – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Dividends
Fidelity D&D Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 3.9%. Eagle Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Fidelity D&D Bancorp pays out 38.1% of its earnings in the form of a dividend. Eagle Bancorp pays out -1.0% 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. Fidelity D&D Bancorp has increased its dividend for 10 consecutive years. Fidelity D&D Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Fidelity D&D Bancorp has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fidelity D&D Bancorp | $126.04 million | 2.01 | $20.79 million | $4.51 | 9.76 |
| Eagle Bancorp | $293.56 million | 2.36 | -$47.03 million | ($3.96) | -5.77 |
Fidelity D&D Bancorp has higher earnings, but lower revenue than Eagle Bancorp. Eagle Bancorp is trading at a lower price-to-earnings ratio than Fidelity D&D Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
20.1% of Fidelity D&D Bancorp shares are owned by institutional investors. Comparatively, 78.0% of Eagle Bancorp shares are owned by institutional investors. 21.0% of Fidelity D&D Bancorp shares are owned by insiders. Comparatively, 3.4% of Eagle Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Fidelity D&D Bancorp and Eagle Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fidelity D&D Bancorp | 19.03% | 12.10% | 0.97% |
| Eagle Bancorp | -18.65% | -10.07% | -1.10% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Fidelity D&D Bancorp and Eagle Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fidelity D&D Bancorp | 0 | 1 | 0 | 0 | 2.00 |
| Eagle Bancorp | 1 | 4 | 1 | 0 | 2.00 |
Eagle Bancorp has a consensus target price of $21.25, indicating a potential downside of 6.96%. Given Eagle Bancorp’s higher probable upside, analysts clearly believe Eagle Bancorp is more favorable than Fidelity D&D Bancorp.
Summary
Fidelity D&D Bancorp beats Eagle Bancorp on 9 of the 16 factors compared between the two stocks.
About Fidelity D&D Bancorp
Fidelity D&D Bancorp, Inc. is a holding company, which engages in the provision of commercial banking services. It operates through the following segments: Commercial and Industrial, Commercial Real Estate, Consumer, and Residential Real Estate. The Commercial and Industrial segment refers to identified historic and/or the projected cash flows of the borrower and secondarily to the underlying collateral provided by the borrower. The Commercial Real Estate segment offers finances purchase of real estate, refinance existing obligations, and/or to provide capital. The Consumer segment includes home equity installment loans and lines of credit. The Residential Real Estate segment operates as a secured first lien position of the borrower’s residential real estate. The company was founded in 1902 and is headquartered in Dunmore, PA.
About Eagle Bancorp
Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; checking and saving accounts; and other deposit services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program; and treasury management services. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, and non-profit organizations and associations, as well as investors. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.
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