Comparing QNB (OTCMKTS:QNBC) & Univest Corporation of Pennsylvania (NASDAQ:UVSP)

Univest Corporation of Pennsylvania (NASDAQ:UVSP) and QNB (OTCMKTS:QNBC) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Profitability

This table compares Univest Corporation of Pennsylvania and QNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Univest Corporation of Pennsylvania	18.25%	10.19%	1.15%
QNB	14.26%	17.60%	1.13%

Volatility and Risk

Univest Corporation of Pennsylvania has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, QNB has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Insider & Institutional Ownership

75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. Comparatively, 0.7% of QNB shares are owned by institutional investors. 1.8% of Univest Corporation of Pennsylvania shares are owned by company insiders. Comparatively, 14.5% of QNB shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Univest Corporation of Pennsylvania and QNB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Univest Corporation of Pennsylvania	$518.35 million	2.11	$90.76 million	$3.33	11.80
QNB	$99.60 million	2.19	$14.09 million	$3.81	11.53

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Univest Corporation of Pennsylvania and QNB, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Univest Corporation of Pennsylvania	0	3	1	0	2.25
QNB	0	0	0	0	0.00

Univest Corporation of Pennsylvania presently has a consensus target price of $37.00, suggesting a potential downside of 5.85%. Given Univest Corporation of Pennsylvania’s stronger consensus rating and higher probable upside, research analysts plainly believe Univest Corporation of Pennsylvania is more favorable than QNB.

Dividends

Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. QNB pays an annual dividend of $1.56 per share and has a dividend yield of 3.6%. Univest Corporation of Pennsylvania pays out 27.6% of its earnings in the form of a dividend. QNB pays out 40.9% 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. Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years.

Summary

Univest Corporation of Pennsylvania beats QNB on 12 of the 17 factors compared between the two stocks.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About QNB

QNB Corp. operates as the bank holding company for QNB Bank that engages in the provision of commercial and retail banking products, and retail brokerage services. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; credit cards and insurance products; merchant services; ATM and debit card services; and internet and mobile-banking, electronic bill pay, and remote deposit capture services. The company serves other community banks, thrift institutions, credit unions and other non-bank financial organizations, such as mutual fund companies, insurance companies, and brokerage companies. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.