Reviewing LCNB (NASDAQ:LCNB) & Quaint Oak Bancorp (OTCMKTS:QNTO)

LCNB (NASDAQ:LCNB) and Quaint Oak Bancorp (OTCMKTS:QNTO) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 4.9%. Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. LCNB pays out 54.0% of its earnings in the form of a dividend. Quaint Oak Bancorp pays out 24.6% 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. LCNB has raised its dividend for 7 consecutive years. LCNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares LCNB and Quaint Oak Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LCNB	$124.52 million	2.03	$23.12 million	$1.63	10.95
Quaint Oak Bancorp	$47.79 million	0.70	$2.80 million	$0.65	19.60

LCNB has higher revenue and earnings than Quaint Oak Bancorp. LCNB 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.

Institutional & Insider Ownership

34.7% of LCNB shares are owned by institutional investors. Comparatively, 8.6% of Quaint Oak Bancorp shares are owned by institutional investors. 6.0% of LCNB shares are owned by company insiders. Comparatively, 27.5% of Quaint Oak Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

LCNB has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Quaint Oak Bancorp has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for LCNB and Quaint Oak Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCNB	0	0	1	0	3.00
Quaint Oak Bancorp	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LCNB	18.57%	8.76%	1.01%
Quaint Oak Bancorp	0.67%	0.62%	0.05%

Summary

LCNB beats Quaint Oak Bancorp on 13 of the 16 factors compared between the two stocks.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.

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.