Critical Review: Central Valley Community Bancorp (NASDAQ: CVCY) and QNB (OTCMKTS: QNBC)
QNB (OTCMKTS: QNBC – Get a rating) and Central Valley Community Bancorp (NASDAQ: CVCY – Get a rating) are both small cap finance companies, but which stock is better? We’ll compare the two companies based on earnings strength, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.
Risk and Volatility
QNB has a beta of 0.44, meaning its stock price is 56% less volatile than the S&P 500. In comparison, Central Valley Community Bancorp has a beta of 0.76, meaning its stock price is 24 % less volatile than the S&P 500.
Dividends
QNB pays an annual dividend of $1.44 per share and has a dividend yield of 4.3%. Central Valley Community Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.8%. Central Valley Community Bancorp pays 21.6% of its profits as a dividend. Central Valley Community Bancorp has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of recent ratings from QNB and Central Valley Community Bancorp, as reported by MarketBeat.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| NB | 0 | 0 | 0 | 0 | N / A |
| Central Valley Community Bancorp | 0 | 1 | 0 | 0 | 2.00 |
Central Valley Community Bancorp has a consensus target price of $24.00, indicating a potential upside of 39.53%. Given the higher possible upside of Central Valley Community Bancorp, analysts clearly believe that Central Valley Community Bancorp is more favorable than QNB.
Insider and Institutional Ownership
15.0% of QNB shares are held by institutional investors. By comparison, 48.9% of Central Valley Community Bancorp’s shares are held by institutional investors. 11.6% of QNB shares are held by insiders of the company. By comparison, 15.1% of Central Valley Community Bancorp’s stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.
Profitability
This table compares the net margins, return on equity and return on assets of QNB and Central Valley Community Bancorp.
| Net margins | Return on equity | return on assets | |
| NB | 27.63% | 11.83% | 0.92% |
| Central Valley Community Bancorp | 32.53% | 11.53% | 1.14% |
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of QNB and Central Valley Community Bancorp.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| NB | $56.55 million | 2.12 | $16.49 million | N / A | N / A |
| Central Valley Community Bancorp | $82.86 million | 2.42 | $28.40 million | $2.22 | 7.75 |
Central Valley Community Bancorp has higher revenues and profits than QNB.
Summary
Central Valley Community Bancorp beats QNB on 10 out of 13 factors compared between the two stocks.
About QNB (Get a rating)
QNB Corp. operates as a bank holding company for QNB Bank which provides commercial and retail banking products and services. It offers various deposit products, which include current and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings and online savings accounts; and term deposits consisting of certificates of deposit and individual retirement accounts. The Company also offers 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 and lines of credit, as well as consumer loans. In addition, it offers brokerage and advisory services to individuals; 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, 2021, the company had twelve full-service community banking offices in Bucks, Montgomery, and Lehigh counties in southeastern Pennsylvania. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.
About Central Valley Community Bancorp (Get a rating)
Central Valley Community Bancorp operates as a bank holding company for Central Valley Community Bank which provides various commercial banking services to small and medium businesses and individuals in the Central Valley region of California. The company accepts demand, savings and term deposits; certificates of deposit; and non-interest bearing demand deposits, as well as NOW and money market accounts. Its lending products include commercial and industrial loans, as well as loans secured by agricultural production and livestock; owner-occupied and investor-occupied commercial real estate, building construction and other land, agricultural real estate and other real estate loans; and equity loans and lines of credit, and installment loans and other consumer loans. The company also offers domestic and international wire transfers, safe deposit boxes, internet banking and other usual banking services. As of December 31, 2021, the company operated through a network of 20 full-service banking offices in Cameron Park, Clovis, Exeter, Folsom, Fresno, Gold River, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Roseville, Sacramento , Stockton and Visalia. Central Valley Community Bancorp was founded in 1979 and is based in Fresno, California.
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