LCNB Corporation (NASDAQ: LCNB) and Sterling Bancorp (NYSE:STL) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LCNB Corporation and Sterling Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCNB Corporation 0 2 0 0 2.00
Sterling Bancorp 0 1 9 0 2.90

LCNB Corporation currently has a consensus price target of $24.00, indicating a potential upside of 26.98%. Sterling Bancorp has a consensus price target of $27.42, indicating a potential upside of 21.58%. Given LCNB Corporation’s higher possible upside, equities analysts plainly believe LCNB Corporation is more favorable than Sterling Bancorp.

Volatility and Risk

LCNB Corporation has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Sterling Bancorp has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

37.9% of LCNB Corporation shares are held by institutional investors. Comparatively, 91.3% of Sterling Bancorp shares are held by institutional investors. 4.2% of LCNB Corporation shares are held by insiders. Comparatively, 3.7% of Sterling Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
LCNB Corporation 23.44% 8.78% 0.97%
Sterling Bancorp 28.40% 8.62% 1.11%

Valuation and Earnings

This table compares LCNB Corporation and Sterling Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LCNB Corporation $50.43 million 3.75 $12.81 million $1.28 14.77
Sterling Bancorp $474.00 million 6.45 $162.79 million $1.20 18.79

Sterling Bancorp has higher revenue and earnings than LCNB Corporation. LCNB Corporation is trading at a lower price-to-earnings ratio than Sterling Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

LCNB Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 3.4%. Sterling Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. LCNB Corporation pays out 50.0% of its earnings in the form of a dividend. Sterling Bancorp pays out 23.3% 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.

Summary

Sterling Bancorp beats LCNB Corporation on 11 of the 16 factors compared between the two stocks.

LCNB Corporation Company Profile

LCNB Corp. (LCNB) is a financial holding company. The Company’s subsidiary includes LCNB National Bank (the Bank). The Bank offers commercial and personal banking services. Its services include safe deposit boxes, night depositories, cashier’s checks, utility bill collections, notary public service, mobile banking and other services tailored for both individuals and businesses. Its loan products include commercial and industrial loans, commercial and residential real estate loans, various types of consumer loans and small business administration loans. Its investment portfolio includes securities available-for-sale, such as the United States Treasury notes, the United States Agency notes, Certificates of deposit, and Equity securities. Its deposit services include checking accounts, negotiable order of withdrawal accounts, savings accounts, money market deposit accounts, lifetime checking accounts, individual retirement accounts and certificates of deposit.

Sterling Bancorp Company Profile

Sterling Bancorp is a financial holding company. The Company is a bank holding company that owns the Sterling National Bank (the Bank). The Bank specializes in the delivery of services and solutions to business owners, their families and consumers within the communities it serves. The Bank offers a line of commercial, business, and consumer banking products and services. The Bank is engaged in the origination of commercial loans and commercial mortgage loans. The Company also originates residential mortgage loans and consumer loans. The Bank offers services in the New York Metro Market, which includes Manhattan and Long Island, and the New York Suburban Market, which consists of Rockland, Orange, Sullivan, Ulster, Putnam and Westchester counties in New York and Bergen County in New Jersey. Its deposit products include non-interest bearing demand deposits, interest bearing demand deposits, savings, money market and certificate of deposits.

Receive News & Ratings for LCNB Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LCNB Corporation and related companies with Analyst Ratings Network's FREE daily email newsletter.