LCNB (LCNB) vs. Its Competitors Financial Contrast

LCNB (NASDAQ:LCNB) is one of 919 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare LCNB to similar companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current recommendations and price targets for LCNB and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCNB	0	2	1	0	2.33
LCNB Competitors	7470	30209	27786	1473	2.35

LCNB currently has a consensus price target of $20.00, indicating a potential upside of 2.09%. As a group, “Banks” companies have a potential upside of 17.09%. Given LCNB’s peers stronger consensus rating and higher probable upside, analysts plainly believe LCNB has less favorable growth aspects than its peers.

Profitability

This table compares LCNB and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LCNB	20.02%	9.00%	1.11%
LCNB Competitors	15.64%	9.43%	0.93%

Institutional & Insider Ownership

34.7% of LCNB shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 5.7% of LCNB shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares LCNB and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LCNB	$124.52 million	$23.12 million	11.19
LCNB Competitors	$297.19 billion	$2.42 billion	20.30

LCNB’s peers have higher revenue and earnings than LCNB. LCNB is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

LCNB has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, LCNB’s peers have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Dividends

LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 4.5%. LCNB pays out 50.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend. LCNB has increased its dividend for 7 consecutive years. LCNB lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

LCNB peers beat LCNB on 13 of the 15 factors compared.

LCNB Company Profile

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.