Quaint Oak Bancorp (OTCMKTS:QNTO) & LCNB (NASDAQ:LCNB) Head to Head Comparison

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for LCNB and Quaint Oak Bancorp, as reported by MarketBeat.com.

	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

Valuation & Earnings

This table compares LCNB and Quaint Oak Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LCNB	$124.52 million	1.97	$23.12 million	$1.63	10.60
Quaint Oak Bancorp	$47.79 million	0.86	$320,000.00	$0.12	129.17

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.

Dividends

LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 5.1%. Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. LCNB pays out 54.0% of its earnings in the form of a dividend. Quaint Oak Bancorp pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LCNB has increased its dividend for 7 consecutive years. LCNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

34.7% of LCNB shares are held by institutional investors. Comparatively, 8.6% of Quaint Oak Bancorp shares are held by institutional investors. 6.0% of LCNB shares are held by insiders. Comparatively, 27.5% of Quaint Oak Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

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

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 14 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.