Head-To-Head Review: Auburn National Bancorporation (NASDAQ:AUBN) versus F.N.B. (NYSE:FNB)

Auburn National Bancorporation (NASDAQ:AUBN) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Risk & Volatility

Auburn National Bancorporation has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Dividends

Auburn National Bancorporation pays an annual dividend of $1.08 per share and has a dividend yield of 4.3%. F.N.B. pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. Auburn National Bancorporation pays out 47.6% of its earnings in the form of a dividend. F.N.B. pays out 32.1% 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Auburn National Bancorporation and F.N.B., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auburn National Bancorporation	0	1	0	0	2.00
F.N.B.	0	0	6	0	3.00

F.N.B. has a consensus price target of $20.20, indicating a potential upside of 9.40%. Given F.N.B.’s stronger consensus rating and higher possible upside, analysts clearly believe F.N.B. is more favorable than Auburn National Bancorporation.

Profitability

This table compares Auburn National Bancorporation and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Auburn National Bancorporation	17.79%	8.78%	0.78%
F.N.B.	21.64%	8.94%	1.19%

Insider & Institutional Ownership

39.5% of Auburn National Bancorporation shares are held by institutional investors. Comparatively, 79.3% of F.N.B. shares are held by institutional investors. 18.7% of Auburn National Bancorporation shares are held by insiders. Comparatively, 1.5% of F.N.B. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Auburn National Bancorporation and F.N.B.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auburn National Bancorporation	$43.89 million	2.02	$7.26 million	$2.27	11.17
F.N.B.	$2.69 billion	2.44	$565.00 million	$1.62	11.40

F.N.B. has higher revenue and earnings than Auburn National Bancorporation. Auburn National Bancorporation is trading at a lower price-to-earnings ratio than F.N.B., indicating that it is currently the more affordable of the two stocks.

Summary

F.N.B. beats Auburn National Bancorporation on 13 of the 16 factors compared between the two stocks.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.