Analyzing DNB Financial (DNBF) and Its Competitors

DNB Financial (NASDAQ: DNBF) is one of 200 publicly-traded companies in the “Commercial Banks” industry, but how does it compare to its rivals? We will compare DNB Financial to similar companies based on the strength of its dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

30.7% of DNB Financial shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are owned by institutional investors. 18.4% of DNB Financial shares are owned by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for DNB Financial and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DNB Financial 0 1 0 0 2.00
DNB Financial Competitors 395 2981 2389 70 2.37

DNB Financial presently has a consensus target price of $37.00, indicating a potential upside of 9.79%. As a group, “Commercial Banks” companies have a potential upside of 5.40%. Given DNB Financial’s higher probable upside, equities analysts clearly believe DNB Financial is more favorable than its rivals.

Earnings and Valuation

This table compares DNB Financial and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DNB Financial $33.89 million $4.97 million 15.25
DNB Financial Competitors $338.81 million $71.86 million 21.36

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

Profitability

This table compares DNB Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DNB Financial 19.77% 8.33% 0.76%
DNB Financial Competitors 20.41% 8.68% 0.92%

Volatility and Risk

DNB Financial has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, DNB Financial’s rivals have a beta of 0.76, suggesting that their average share price is 24% less volatile than the S&P 500.

Dividends

DNB Financial pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. DNB Financial pays out 12.7% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.4% of their earnings in the form of a dividend.

Summary

DNB Financial rivals beat DNB Financial on 12 of the 15 factors compared.

DNB Financial Company Profile

DNB Financial Corporation is a bank holding company for DNB First, National Association (the Bank). The Company operates through the Community Banking segment. The Bank is a commercial bank providing a range of services to individuals and small to medium sized businesses in the southeastern Pennsylvania market area, including accepting time, demand and savings deposits, and making secured and unsecured commercial, real estate and consumer loans. In addition, the Bank has over 10 branches and a wealth management group, DNB First Wealth Management. Its loan and lease portfolio consists primarily of commercial and residential real estate loans, commercial loans and lines of credit (including commercial construction), commercial leases and consumer loans. Its investment portfolio includes the United States agency securities, bank stocks, and other bonds and notes. Its primary source of funds is derived from customer deposits, which are typically generated by its branch offices.

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