DNB Financial (NASDAQ: DNBF) is one of 200 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its peers? We will compare DNB Financial to similar businesses based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares DNB Financial and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DNB Financial $33.89 million $4.97 million 15.11
DNB Financial Competitors $338.81 million $71.86 million 21.88

DNB Financial’s peers have higher revenue and earnings than DNB Financial. DNB Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

DNB Financial pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. DNB Financial pays out 12.7% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.4% of their earnings in the form of a dividend.

Volatility and Risk

DNB Financial has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, DNB Financial’s peers have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Institutional and Insider Ownership

30.7% of DNB Financial shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are owned by institutional investors. 18.4% of DNB Financial shares are owned by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares DNB Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DNB Financial 19.77% 8.33% 0.76%
DNB Financial Competitors 20.60% 8.73% 0.92%

Analyst Recommendations

This is a breakdown of current recommendations for DNB Financial and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DNB Financial 0 1 0 0 2.00
DNB Financial Competitors 401 2987 2393 70 2.36

DNB Financial currently has a consensus price target of $37.00, suggesting a potential upside of 10.78%. As a group, “Commercial Banks” companies have a potential upside of 5.83%. Given DNB Financial’s higher possible upside, equities research analysts clearly believe DNB Financial is more favorable than its peers.

Summary

DNB Financial peers beat DNB Financial on 12 of the 15 factors compared.

About DNB Financial

DNB Financial Corporation is a bank holding company for DNB First, National Association (the Bank). The Company operates through the Community Banking segment. The Bank is a commercial bank providing a range of services to individuals and small to medium sized businesses in the southeastern Pennsylvania market area, including accepting time, demand and savings deposits, and making secured and unsecured commercial, real estate and consumer loans. In addition, the Bank has over 10 branches and a wealth management group, DNB First Wealth Management. Its loan and lease portfolio consists primarily of commercial and residential real estate loans, commercial loans and lines of credit (including commercial construction), commercial leases and consumer loans. Its investment portfolio includes the United States agency securities, bank stocks, and other bonds and notes. Its primary source of funds is derived from customer deposits, which are typically generated by its branch offices.

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