Financial Review: Eagle Bancorp (NASDAQ:EGBN) vs. Univest Corporation of Pennsylvania (NASDAQ:UVSP)

Univest Corporation of Pennsylvania (NASDAQ:UVSP) and Eagle Bancorp (NASDAQ:EGBN) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Valuation and Earnings

This table compares Univest Corporation of Pennsylvania and Eagle Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Univest Corporation of Pennsylvania	$518.35 million	2.18	$90.76 million	$3.33	12.18
Eagle Bancorp	$634.26 million	1.31	-$138.05 million	($3.79)	-7.20

Univest Corporation of Pennsylvania has higher earnings, but lower revenue than Eagle Bancorp. Eagle Bancorp is trading at a lower price-to-earnings ratio than Univest Corporation of Pennsylvania, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. Comparatively, 78.0% of Eagle Bancorp shares are owned by institutional investors. 1.8% of Univest Corporation of Pennsylvania shares are owned by company insiders. Comparatively, 3.4% of Eagle Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Eagle Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Univest Corporation of Pennsylvania pays out 27.6% of its earnings in the form of a dividend. Eagle Bancorp pays out -1.1% 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. Univest Corporation of Pennsylvania has raised its dividend for 1 consecutive years. Univest Corporation of Pennsylvania is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for Univest Corporation of Pennsylvania and Eagle Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Univest Corporation of Pennsylvania	0	3	1	0	2.25
Eagle Bancorp	1	2	1	1	2.40

Univest Corporation of Pennsylvania currently has a consensus price target of $37.00, suggesting a potential downside of 8.80%. Eagle Bancorp has a consensus price target of $27.50, suggesting a potential upside of 0.84%. Given Eagle Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Eagle Bancorp is more favorable than Univest Corporation of Pennsylvania.

Profitability

This table compares Univest Corporation of Pennsylvania and Eagle Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Univest Corporation of Pennsylvania	18.25%	10.19%	1.15%
Eagle Bancorp	-18.65%	-10.03%	-1.10%

Risk & Volatility

Univest Corporation of Pennsylvania has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Summary

Univest Corporation of Pennsylvania beats Eagle Bancorp on 9 of the 17 factors compared between the two stocks.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About Eagle Bancorp

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; checking and saving accounts; and other deposit services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program; and treasury management services. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, and non-profit organizations and associations, as well as investors. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.