Contrasting First of Long Island (NASDAQ:FLIC) & Fidelity D & D Bancorp (NASDAQ:FDBC)

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

Profitability

This table compares Fidelity D & D Bancorp and First of Long Island’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity D & D Bancorp	16.50%	10.49%	0.82%
First of Long Island	9.52%	4.74%	0.43%

Institutional & Insider Ownership

20.0% of Fidelity D & D Bancorp shares are held by institutional investors. Comparatively, 48.3% of First of Long Island shares are held by institutional investors. 21.0% of Fidelity D & D Bancorp shares are held by company insiders. Comparatively, 6.3% of First of Long Island shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Fidelity D & D Bancorp has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, First of Long Island has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Fidelity D & D Bancorp and First of Long Island, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity D & D Bancorp	0	0	0	0	0.00
First of Long Island	0	0	1	0	3.00

First of Long Island has a consensus target price of $16.56, suggesting a potential upside of 39.39%. Given First of Long Island’s stronger consensus rating and higher probable upside, analysts plainly believe First of Long Island is more favorable than Fidelity D & D Bancorp.

Dividends

Fidelity D & D Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.8%. First of Long Island pays an annual dividend of $0.84 per share and has a dividend yield of 7.1%. Fidelity D & D Bancorp pays out 42.6% of its earnings in the form of a dividend. First of Long Island pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fidelity D & D Bancorp has increased its dividend for 10 consecutive years.

Earnings & Valuation

This table compares Fidelity D & D Bancorp and First of Long Island”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity D & D Bancorp	$81.55 million	2.95	$20.79 million	$3.76	11.08
First of Long Island	$85.87 million	3.14	$17.08 million	$0.72	16.50

Fidelity D & D Bancorp has higher earnings, but lower revenue than First of Long Island. Fidelity D & D Bancorp is trading at a lower price-to-earnings ratio than First of Long Island, indicating that it is currently the more affordable of the two stocks.

Summary

Fidelity D & D Bancorp beats First of Long Island on 9 of the 17 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 First of Long Island

The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations. The company offers business and small business checking, personal checking, negotiable order of withdrawal, interest on lawyer, escrow service, rent security, personal and nonpersonal money market, savings, time deposit, and individual retirement accounts. It also provides commercial and residential mortgage, commercial and industrial, small business credit scored, Small Business Administration, construction and land development, consumer, and home equity lines/loans, as well as standby letters of credit; debit or credit cards; and overdraft facilities. In addition, the company offers life insurance, investment management, trust, estate and custody, retail investment, bill payment, lockbox, ACH, safe deposit box rental, wire transfer, money order, checkbook printing, check, ATM, and online and mobile banking services. The First of Long Island Corporation was founded in 1927 and is headquartered in Melville, New York.