FNCB Bancorp (NASDAQ:FNCB) and The First of Long Island (NASDAQ:FLIC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Volatility and Risk
FNCB Bancorp has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, The First of Long Island has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Profitability
This table compares FNCB Bancorp and The First of Long Island's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| FNCB Bancorp | 24.88% | 9.65% | 1.03% |
| The First of Long Island | 26.67% | 10.78% | 1.02% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for FNCB Bancorp and The First of Long Island, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| FNCB Bancorp | 0 | 0 | 0 | 0 | N/A |
| The First of Long Island | 0 | 0 | 2 | 0 | 3.00 |
The First of Long Island has a consensus target price of $19.50, suggesting a potential downside of 9.85%. Given The First of Long Island's higher probable upside, analysts plainly believe The First of Long Island is more favorable than FNCB Bancorp.
Institutional and Insider Ownership
17.3% of FNCB Bancorp shares are owned by institutional investors. Comparatively, 56.8% of The First of Long Island shares are owned by institutional investors. 16.0% of FNCB Bancorp shares are owned by company insiders. Comparatively, 5.4% of The First of Long Island shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares FNCB Bancorp and The First of Long Island's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| FNCB Bancorp | $53.68 million | 2.64 | $11.07 million | N/A | N/A |
| The First of Long Island | $154.46 million | 3.33 | $41.56 million | $1.75 | 12.36 |
The First of Long Island has higher revenue and earnings than FNCB Bancorp.
Dividends
FNCB Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 3.4%. The First of Long Island pays an annual dividend of $0.76 per share and has a dividend yield of 3.5%. The First of Long Island pays out 43.4% of its earnings in the form of a dividend. FNCB Bancorp has raised its dividend for 1 consecutive years and The First of Long Island has raised its dividend for 14 consecutive years. The First of Long Island is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
The First of Long Island beats FNCB Bancorp on 12 of the 15 factors compared between the two stocks.
