Reviewing RBB Bancorp (NASDAQ:RBB) and QNB (NASDAQ:QNBC)

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

Profitability

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

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

Risk & Volatility

RBB Bancorp has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, QNB has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

30.8% of RBB Bancorp shares are held by institutional investors. Comparatively, 12.9% of QNB shares are held by institutional investors. 23.9% of RBB Bancorp shares are held by insiders. Comparatively, 9.4% of QNB shares 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.

Dividends

RBB Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. QNB pays an annual dividend of $1.32 per share and has a dividend yield of 3.4%. RBB Bancorp pays out 18.8% of its earnings in the form of a dividend.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RBB Bancorp $114.96 million 3.49 $36.10 million $2.13 9.40
QNB $48.09 million 2.83 $11.34 million N/A N/A

RBB Bancorp has higher revenue and earnings than QNB.

Analyst Recommendations

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

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

RBB Bancorp presently has a consensus target price of $20.75, indicating a potential upside of 3.65%. Given RBB Bancorp’s higher probable upside, equities research analysts clearly believe RBB Bancorp is more favorable than QNB.

Summary

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

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.

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.

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