Stock Yards Bancorp (NASDAQ: SYBT) and LCNB Corporation (NASDAQ:LCNB) are both small-cap financials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Stock Yards Bancorp and LCNB Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Stock Yards Bancorp $145.71 million 5.92 $41.02 million $1.90 20.03
LCNB Corporation $54.60 million 3.73 $12.48 million $1.30 15.62

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

Institutional and Insider Ownership

46.6% of Stock Yards Bancorp shares are owned by institutional investors. Comparatively, 37.6% of LCNB Corporation shares are owned by institutional investors. 6.2% of Stock Yards Bancorp shares are owned by insiders. Comparatively, 4.2% of LCNB Corporation shares are owned by 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.

Dividends

Stock Yards Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. LCNB Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 3.2%. Stock Yards Bancorp pays out 42.1% of its earnings in the form of a dividend. LCNB Corporation pays out 49.2% 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stock Yards Bancorp 0 1 0 0 2.00
LCNB Corporation 0 2 0 0 2.00

Stock Yards Bancorp currently has a consensus price target of $38.00, suggesting a potential downside of 0.13%. LCNB Corporation has a consensus price target of $24.00, suggesting a potential upside of 18.23%. Given LCNB Corporation’s higher possible upside, analysts plainly believe LCNB Corporation is more favorable than Stock Yards Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Stock Yards Bancorp 28.57% 13.51% 1.42%
LCNB Corporation 23.84% 8.88% 0.99%

Risk and Volatility

Stock Yards Bancorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, LCNB Corporation has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Summary

Stock Yards Bancorp beats LCNB Corporation on 12 of the 14 factors compared between the two stocks.

About Stock Yards Bancorp

Stock Yards Bancorp, Inc. is the holding company for Stock Yards Bank & Trust Company (the Bank). The Bank is a state chartered bank. The Company operates through two segments: commercial banking, and wealth management and trust. The commercial banking segment provides a full range of loan and deposit products to individual consumers and businesses, plus origination of consumer mortgages and securities brokerage activity. The wealth management and trust segment provides investment management, trust and estate administration, and retirement plan services. The Bank provides commercial and personal banking services in the Louisville, Kentucky, Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets through 37 full service banking offices, as of December 31, 2016. The Bank also originates and sells single-family residential mortgages. Additionally, the Bank offers securities brokerage services via its branch network through an arrangement with a third party broker-dealer.

About LCNB Corporation

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.

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