Analyzing Jeffersonville Bancorp (OTCMKTS:JFBC) and Fidelity D&D Bancorp (NASDAQ:FDBC)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Fidelity D&D Bancorp and Jeffersonville Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity D&D Bancorp	0	1	0	0	2.00
Jeffersonville Bancorp	0	0	0	0	0.00

Insider & Institutional Ownership

20.1% of Fidelity D&D Bancorp shares are held by institutional investors. 18.4% of Fidelity D&D Bancorp shares are held by company insiders. Comparatively, 8.4% of Jeffersonville Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Fidelity D&D Bancorp has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Jeffersonville Bancorp has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares Fidelity D&D Bancorp and Jeffersonville 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%	12.36%	0.98%
Jeffersonville Bancorp	34.98%	12.72%	1.80%

Valuation and Earnings

This table compares Fidelity D&D Bancorp and Jeffersonville Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity D&D Bancorp	$126.04 million	2.00	$20.79 million	$4.51	9.69
Jeffersonville Bancorp	$34.26 million	2.70	$11.33 million	$2.78	7.85

Fidelity D&D Bancorp has higher revenue and earnings than Jeffersonville Bancorp. Jeffersonville 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 $1.60 per share and has a dividend yield of 3.7%. Jeffersonville Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Fidelity D&D Bancorp pays out 35.5% of its earnings in the form of a dividend. Jeffersonville Bancorp pays out 21.6% 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. 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.

Summary

Fidelity D&D Bancorp beats Jeffersonville Bancorp on 10 of the 15 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 Jeffersonville Bancorp

Jeffersonville Bancorp operates as the bank holding company for Jeff Bank that provides community banking services to individuals, small businesses, and local municipal governments primarily in Sullivan County, New York. The company offers various deposit products, such as checking, money market, savings, and NOW, as well as demand and time deposits. It also offers commercial mortgage, farmland, construction, real estate, agricultural, residential mortgage, home equity, consumer, installment, and other consumer loans. The company was founded in 1913 and is based in Jeffersonville, New York.