LCNB (NASDAQ:LCNB) vs. Hawthorn Bancshares (NASDAQ:HWBK) Head-To-Head Contrast

LCNB (NASDAQ:LCNB) and Hawthorn Bancshares (NASDAQ:HWBK) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings & Valuation

This table compares LCNB and Hawthorn Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LCNB	$124.52 million	1.87	$23.12 million	$1.61	10.16
Hawthorn Bancshares	$80.31 million	3.16	$23.80 million	$3.64	10.12

Hawthorn Bancshares has lower revenue, but higher earnings than LCNB. Hawthorn Bancshares is trading at a lower price-to-earnings ratio than LCNB, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

34.7% of LCNB shares are held by institutional investors. Comparatively, 30.7% of Hawthorn Bancshares shares are held by institutional investors. 5.7% of LCNB shares are held by company insiders. Comparatively, 22.9% of Hawthorn Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for LCNB and Hawthorn Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCNB	0	0	1	0	3.00
Hawthorn Bancshares	0	1	0	0	2.00

Dividends

LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 5.4%. Hawthorn Bancshares pays an annual dividend of $0.84 per share and has a dividend yield of 2.3%. LCNB pays out 54.7% of its earnings in the form of a dividend. Hawthorn Bancshares pays out 23.1% 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. LCNB has raised its dividend for 7 consecutive years and Hawthorn Bancshares has raised its dividend for 5 consecutive years. LCNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares LCNB and Hawthorn Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LCNB	18.50%	8.53%	1.01%
Hawthorn Bancshares	22.14%	15.24%	1.33%

Risk & Volatility

LCNB has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Hawthorn Bancshares has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.

About Hawthorn Bancshares

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.