Head-To-Head Review: WesBanco (WSBC) vs. Farmers National Banc Corp. (FMNB)

WesBanco (NASDAQ: WSBC) and Farmers National Banc Corp. (NASDAQ:FMNB) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitabiliy, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares WesBanco and Farmers National Banc Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WesBanco 23.39% 7.57% 1.04%
Farmers National Banc Corp. 22.03% 10.06% 1.10%

Dividends

WesBanco pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. Farmers National Banc Corp. pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. WesBanco pays out 48.1% of its earnings in the form of a dividend. Farmers National Banc Corp. pays out 25.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for WesBanco and Farmers National Banc Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WesBanco 0 2 3 0 2.60
Farmers National Banc Corp. 0 2 0 0 2.00

WesBanco currently has a consensus price target of $39.50, indicating a potential upside of 0.18%. Given WesBanco’s stronger consensus rating and higher probable upside, equities research analysts plainly believe WesBanco is more favorable than Farmers National Banc Corp..

Earnings & Valuation

This table compares WesBanco and Farmers National Banc Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WesBanco $340.33 million 5.09 $94.94 million $2.16 18.25
Farmers National Banc Corp. $88.95 million 4.46 $21.65 million $0.80 18.31

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

Institutional & Insider Ownership

57.0% of WesBanco shares are owned by institutional investors. Comparatively, 34.0% of Farmers National Banc Corp. shares are owned by institutional investors. 4.1% of WesBanco shares are owned by insiders. Comparatively, 7.8% of Farmers National Banc Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

WesBanco has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Farmers National Banc Corp. has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Summary

WesBanco beats Farmers National Banc Corp. on 11 of the 16 factors compared between the two stocks.

About WesBanco

WesBanco, Inc. (WesBanco) is a bank holding company. The Company offers a range of financial services, including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. WesBanco offers its services through two segments: community banking, which offers services, such as commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and trust and investment services, which offers trust services, as well as various alternative investment products, including mutual funds. The Community Banking segment also offers insurance and securities brokerage services, among others. As of December 31, 2016, WesBanco operated one commercial bank, WesBanco Bank, Inc. through 174 branches and 163 automated teller machines (ATMs) located in West Virginia, Ohio, western Pennsylvania, Kentucky and southern Indiana.

About Farmers National Banc Corp.

Farmers National Banc Corp. is a one-bank holding company. The Company’s principal business consists of owning and supervising its subsidiaries. The Company operates through tree segments: the Bank, Trust and Retirement Consulting. The Company operates principally through its subsidiaries, The Farmers National Bank of Canfield (the Bank or Farmers Bank), Farmers Trust Company (Trust or Farmers Trust), National Associates, Inc. (NAI) and Farmers National Captive, Inc. (Captive). The Bank’s subsidiaries include Farmers National Insurance, LLC (Farmers Insurance) and Farmers of Canfield Investment Co. (Farmers Investments). The banking operation offers loans, investments and deposits; the trust operations provide trust services, and the retirement consulting operations offer consulting services. The Company and its subsidiaries operate in the domestic banking, trust, retirement consulting, insurance and financial management industries.

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