Farmers National Banc (NASDAQ:FMNB) vs. Univest Corporation of Pennsylvania (NASDAQ:UVSP) Financial Analysis

Farmers National Banc (NASDAQ:FMNB) and Univest Corporation of Pennsylvania (NASDAQ:UVSP) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	19.60%	12.90%	1.34%
Univest Corporation of Pennsylvania	17.95%	9.94%	1.13%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Farmers National Banc and Univest Corporation of Pennsylvania, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	0	3	1	0	2.25
Univest Corporation of Pennsylvania	0	3	0	1	2.50

Farmers National Banc currently has a consensus target price of $17.00, indicating a potential upside of 10.25%. Univest Corporation of Pennsylvania has a consensus target price of $40.50, indicating a potential upside of 0.07%. Given Farmers National Banc’s higher probable upside, research analysts plainly believe Farmers National Banc is more favorable than Univest Corporation of Pennsylvania.

Dividends

Farmers National Banc pays an annual dividend of $0.72 per share and has a dividend yield of 4.7%. Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Farmers National Banc pays out 51.8% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 27.5% 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.

Valuation and Earnings

This table compares Farmers National Banc and Univest Corporation of Pennsylvania”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$279.92 million	3.26	$54.59 million	$1.39	11.09
Univest Corporation of Pennsylvania	$518.35 million	2.12	$90.76 million	$3.35	12.08

Univest Corporation of Pennsylvania has higher revenue and earnings than Farmers National Banc. Farmers National Banc 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.

Insider and Institutional Ownership

38.7% of Farmers National Banc shares are owned by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. 3.5% of Farmers National Banc shares are owned by insiders. Comparatively, 1.8% of Univest Corporation of Pennsylvania 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.

Risk & Volatility

Farmers National Banc has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.

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.