Farmers National Banc (NASDAQ:FMNB) vs. Chemung Financial (NASDAQ:CHMG) Financial Analysis


Farmers National Banc (NASDAQ:FMNB – Get Rating) and Chemung Financial (NASDAQ:CHMG – Get Rating) are both small cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Farmers National Banc and Chemung Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
National Farmers Bench $154.65 million 3.54 $51.84 million $1.80 8.93
Chemung Financial $92.88 million 2.35 $26.42 million $5.64 8:30 am

Farmers National Banc has higher revenue and profit than Chemung Financial. Chemung Financial trades at a lower price-to-earnings ratio than Farmers National Banc, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings from Farmers National Banc and Chemung Financial, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
National Farmers Bench 0 0 1 0 3.00
Chemung Financial 0 0 0 0 N / A

The Farmers National Banc currently has a consensus target price of $20.00, indicating a potential upside of 24.07%. Considering the higher possible upside of Farmers National Banc, research analysts clearly believe that Farmers National Banc is more favorable than Chemung Financial.

Profitability

This table compares the net margins, return on equity and return on assets of Farmers National Banc and Chemung Financial.

Net margins Return on equity return on assets
National Farmers Bench 33.35% 16.07% 1.79%
Chemung Financial 28.45% 12.95% 1.09%

Risk and Volatility

Farmers National Banc has a beta of 0.93, suggesting its stock price is 7% less volatile than the S&P 500. In comparison, Chemung Financial has a beta of 0.07, suggesting its stock price is 93 % less volatile than the S&P 500.

Institutional and insider ownership

43.0% of Farmers National Banc shares are held by institutional investors. By comparison, 36.2% of Chemung Financial’s shares are held by institutional investors. 8.1% of Farmers National Banc shares are held by insiders. By comparison, 13.3% of Chemung Financial’s shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a company is poised for long-term growth.

Dividends

Farmers National Banc pays an annual dividend of $0.64 per share and has a dividend yield of 4.0%. Chemung Financial pays an annual dividend of $1.24 per share and has a dividend yield of 2.6%. Farmers National Banc pays 35.6% of its profits as a dividend. Chemung Financial pays 22.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Farmers National Banc has increased its dividend for 7 consecutive years and Chemung Financial has increased its dividend for 1 consecutive year. Farmers National Banc is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Farmers National Banc beats Chemung Financial on 13 of the 16 factors compared between the two stocks.

National Farmers Bank Company Profile (Get an assessment)

Farmers National Banc Corp., a financial holding company, operates in banking, trust, pension advisory, insurance and financial management. It offers commercial and retail banking services, including checking, savings and term deposit accounts; commercial, mortgage and installment loans, and home equity loans; home equity lines of credit, night deposit, safety deposit box, money order, bank check, ATM, Internet banking, travel card, electronic bond transaction, MasterCard and Visa credit cards, brokerage and other services. The company also provides trust services to individuals and businesses in the areas of estate settlement, administration of trusts and employee benefit plans; retirement services; property and casualty insurance products and services; and various insurance products through authorized representatives, as well as investments in municipal securities. It operates through 47 locations in northeastern Ohio and one location in southwestern Pennsylvania. The company was founded in 1887 and is based in Canfield, Ohio.

Chemung Financial Company Profile (Get an assessment)

Chemung Financial Corporation operates as a holding company for Chemung Canal Trust Company which provides a range of banking, financial, trust and other financial services. The company provides demand, savings and term deposits; unpaid and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans including loans to small and medium enterprises; commercial mortgage loans; residential mortgage loans; consumer loans, including home equity lines of credit and home equity term loans; and interest rate swaps, letters of credit, wealth management, employee benefit plans, mutual funds, insurance products and brokerage services. In addition, it provides securities, insurance and tax preparation services. Additionally, it provides custodian, custodian and trustee services, as well as an agent for pension plans, profit sharing and other benefit trusts; and various investment, retirement, estate planning and employee benefits administration services. The company operates 31 branches located in 13 counties in New York and Bradford County in Pennsylvania. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.



Get news and reviews for Farmers National Banc Daily – Enter your email address below to receive a concise daily summary of breaking news and analyst ratings for Farmers National Banc and related companies with MarketBeat.com’s FREE daily newsletter.

Sarah J. Greer