Head-To-Head Survey: FNCB Bancorp (NASDAQ:FNCB) versus NewtekOne (NASDAQ:NEWT)

FNCB Bancorp (NASDAQ:FNCB) and NewtekOne (NASDAQ:NEWT) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Analyst Ratings

This is a summary of current ratings for FNCB Bancorp and NewtekOne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FNCB Bancorp	0	0	0	0	N/A
NewtekOne	0	3	1	0	2.25

NewtekOne has a consensus price target of $14.50, indicating a potential upside of 19.93%. Given NewtekOne’s higher possible upside, analysts plainly believe NewtekOne is more favorable than FNCB Bancorp.

Volatility and Risk

FNCB Bancorp has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Dividends

FNCB Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 6.5%. NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.3%. FNCB Bancorp pays out 54.5% of its earnings in the form of a dividend. NewtekOne pays out 46.9% 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.

Profitability

This table compares FNCB Bancorp and NewtekOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FNCB Bancorp	14.64%	10.32%	0.70%
NewtekOne	15.19%	20.71%	3.09%

Institutional & Insider Ownership

13.3% of FNCB Bancorp shares are held by institutional investors. Comparatively, 38.4% of NewtekOne shares are held by institutional investors. 18.0% of FNCB Bancorp shares are held by insiders. Comparatively, 6.4% of NewtekOne shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares FNCB Bancorp and NewtekOne’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FNCB Bancorp	$88.67 million	1.24	$12.98 million	$0.66	8.41
NewtekOne	$271.46 million	1.10	$42.97 million	$1.62	7.46

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

Summary

NewtekOne beats FNCB Bancorp on 11 of the 15 factors compared between the two stocks.

About FNCB Bancorp

FNCB Bancorp, Inc. operates as the bank holding company for FNCB Bank that provides retail and commercial banking services to individuals, businesses, local governments, and municipalities in the United States. The company offers deposit products, such as savings account, money market, checking accounts, and certificate of deposit. It also provides residential mortgage loans, and home equity term loans and lines of credit; construction, land acquisition, and development loans; commercial real estate loans; commercial and industrial loans which includes lines of credit, dealer floor plan lines, equipment loans, vehicle loans, and term loans; commercial equipment financing; consumer loans, such as secured and unsecured installment loans, direct new and used automobile financing, personal lines of credit, and overdraft protection loan; state and political subdivision loans and leases; and purchased loans. In addition, the company offers debit cards and banking through online, mobile, and telephone banking, as well as wealth management services, remote deposit capture, merchant services, treasury services, and purchasing card services. The company was formerly known as First National Community Bancorp, Inc. and changed its name to FNCB Bancorp, Inc. in October 2016. FNCB Bancorp, Inc. was founded in 1910 and is headquartered in Dunmore, Pennsylvania.

About NewtekOne

NewtekOne, Inc., a financial holding company, provides a range of business and financial solutions to the small- and medium-sized business market. Its business and financial solutions include banking services, business lending, electronic payment processing, ecommerce, accounts receivable financing and inventory financing, insurance solutions, web services, and payroll and benefits solutions, as well as technology solutions, including cloud computing, data backup, storage, retrieval, and IT consulting. The company was founded in 1998 and is based in Boca Raton, Florida.