Comparing QNB (OTCMKTS:QNBC) and RBB Bancorp (OTCMKTS:RBB)

QNB (OTCMKTS:QNBC) and RBB Bancorp (NASDAQ:RBB) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares QNB and RBB Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QNB 22.84% 10.62% 0.99%
RBB Bancorp 23.88% 9.81% 1.32%

Risk and Volatility

QNB has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for QNB and RBB Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QNB 0 0 0 0 N/A
RBB Bancorp 0 2 1 0 2.33

RBB Bancorp has a consensus target price of $20.75, suggesting a potential upside of 2.32%. Given RBB Bancorp’s higher possible upside, analysts clearly believe RBB Bancorp is more favorable than QNB.

Dividends

QNB pays an annual dividend of $1.32 per share and has a dividend yield of 3.5%. RBB Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. RBB Bancorp pays out 18.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

12.9% of QNB shares are owned by institutional investors. Comparatively, 30.8% of RBB Bancorp shares are owned by institutional investors. 9.4% of QNB shares are owned by insiders. Comparatively, 23.9% of RBB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares QNB and RBB Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QNB $48.09 million 2.78 $11.34 million N/A N/A
RBB Bancorp $114.96 million 3.53 $36.10 million $2.13 9.52

RBB Bancorp has higher revenue and earnings than QNB.

Summary

RBB Bancorp beats QNB on 10 of the 14 factors compared between the two stocks.

QNB Company Profile

QNB Corp. operates as a bank holding company for QNB Bank that provides commercial and retail banking services for the residents and businesses in southeastern Pennsylvania. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; letters of credit, credit cards, and insurance products; merchant services; ATM and debit card services; and Internet-and mobile-banking, electronic bill payment, and remote deposit capture services. As of December 31, 2018, the company operated 11 branches in Bucks, Montgomery, and Lehigh counties. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.

RBB Bancorp Company Profile

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential construction, commercial construction, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and trust, remote deposit, e-banking, and mobile banking services, as well as operates a loan production office in California. The company primarily offers its products and services to individuals, businesses, municipalities, and other entities. As of March 26, 2019, it operated 10 branches in Los Angeles County; 2 branches in Ventura County; 1 branch in Irvine, California; 1 branch in Las Vegas, Nevada; and 9 branches and 2 loan offices in Brooklyn, Queens, and Manhattan in New York. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

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