Contrasting Fidelity D & D Bancorp (NASDAQ:FDBC) and First Commonwealth Financial (NYSE:FCF)

Fidelity D & D Bancorp (NASDAQ:FDBC) and First Commonwealth Financial (NYSE:FCF) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Dividends

Fidelity D & D Bancorp pays an annual dividend of $1.12 per share and has a dividend yield of 1.9%. First Commonwealth Financial pays an annual dividend of $0.44 per share and has a dividend yield of 4.4%. First Commonwealth Financial pays out 40.0% of its earnings in the form of a dividend. Fidelity D & D Bancorp has increased its dividend for 5 consecutive years and First Commonwealth Financial has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Fidelity D & D Bancorp and First Commonwealth Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidelity D & D Bancorp $49.46 million 5.85 $11.58 million N/A N/A
First Commonwealth Financial $410.75 million 2.33 $105.33 million $1.10 9.06

First Commonwealth Financial has higher revenue and earnings than Fidelity D & D Bancorp.

Profitability

This table compares Fidelity D & D Bancorp and First Commonwealth Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fidelity D & D Bancorp 18.22% 9.09% 0.88%
First Commonwealth Financial 18.68% 7.42% 0.89%

Institutional and Insider Ownership

13.5% of Fidelity D & D Bancorp shares are owned by institutional investors. Comparatively, 68.7% of First Commonwealth Financial shares are owned by institutional investors. 26.9% of Fidelity D & D Bancorp shares are owned by company insiders. Comparatively, 1.5% of First Commonwealth Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Fidelity D & D Bancorp has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, First Commonwealth Financial has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Fidelity D & D Bancorp and First Commonwealth Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fidelity D & D Bancorp 0 0 0 0 N/A
First Commonwealth Financial 0 6 0 0 2.00

First Commonwealth Financial has a consensus target price of $9.40, suggesting a potential downside of 5.72%. Given First Commonwealth Financial’s higher possible upside, analysts clearly believe First Commonwealth Financial is more favorable than Fidelity D & D Bancorp.

Summary

First Commonwealth Financial beats Fidelity D & D Bancorp on 8 of the 14 factors compared between the two stocks.

Fidelity D & D Bancorp Company Profile

Fidelity D & D Bancorp, Inc. operates as the holding company for The Fidelity Deposit and Discount Bank that provides a range of banking, financial, and trust services to individuals, small businesses, and corporate customers primarily in Lackawanna and Luzerne counties, Pennsylvania. The company accepts various deposits products, such as demand, savings, clubs, interest and non-interest bearing checking, money market, and interest-bearing time and savings accounts, as well as short-and long-term time deposits or certificates of deposit. Its loan portfolio includes commercial and industrial loans, commercial real estate loans, consumer loans, and residential mortgage loans. The company also provides alternative financial and insurance products with asset management services. As of December 31, 2019, it operated 12 full-service banking offices. Fidelity D & D Bancorp, Inc. was founded in 1902 and is headquartered in Dunmore, Pennsylvania.

First Commonwealth Financial Company Profile

First Commonwealth Financial Corporation, through its subsidiaries, provides consumer and commercial banking services to individuals, and small and mid-sized businesses in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (ATM) services, as well as Internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. It also offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. As of December 31, 2019, the company operated 147 community banking offices in western and central Pennsylvania, as well as northeastern, central, and southwestern Ohio. It also leases 3 mortgage loan production offices and 4 corporate loan production offices, as well as operates a network of 163 automated teller machines. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.

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