Head-To-Head Analysis: Fidelity D&D Bancorp (NASDAQ:FDBC) vs. Parke Bancorp (NASDAQ:PKBK)

Fidelity D&D Bancorp (NASDAQ:FDBC) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Institutional & Insider Ownership

20.1% of Fidelity D&D Bancorp shares are owned by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are owned by institutional investors. 18.4% of Fidelity D&D Bancorp shares are owned by company insiders. Comparatively, 12.9% of Parke Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Fidelity D&D Bancorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares Fidelity D&D Bancorp and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity D&D Bancorp	20.08%	12.84%	1.04%
Parke Bancorp	25.86%	12.16%	1.75%

Earnings and Valuation

This table compares Fidelity D&D Bancorp and Parke Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity D&D Bancorp	$140.40 million	1.86	$28.20 million	$4.87	9.28
Parke Bancorp	$146.08 million	2.21	$37.78 million	$3.16	8.81

Parke Bancorp has higher revenue and earnings than Fidelity D&D Bancorp. Parke 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.

Dividends

Fidelity D&D Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 3.8%. Parke Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Fidelity D&D Bancorp pays out 35.3% of its earnings in the form of a dividend. Parke Bancorp pays out 22.8% 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 raised 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Fidelity D&D Bancorp and Parke Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity D&D Bancorp	0	1	0	0	2.00
Parke Bancorp	0	0	1	0	3.00

Summary

Parke Bancorp beats Fidelity D&D 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 Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.