Contrasting First of Long Island (NASDAQ:FLIC) and Fidelity D & D Bancorp (NASDAQ:FDBC)

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

Valuation & Earnings

This table compares First of Long Island and Fidelity D & D Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First of Long Island	$85.87 million	3.14	$17.08 million	$0.72	16.50
Fidelity D & D Bancorp	$81.55 million	2.90	$20.79 million	$3.76	10.89

Fidelity D & D Bancorp has lower revenue, but higher earnings than First of Long Island. Fidelity D & D Bancorp is trading at a lower price-to-earnings ratio than First of Long Island, indicating that it is currently the more affordable of the two stocks.

Dividends

First of Long Island pays an annual dividend of $0.84 per share and has a dividend yield of 7.1%. Fidelity D & D Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.9%. First of Long Island pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fidelity D & D Bancorp pays out 42.6% of its earnings in the form of a dividend. Fidelity D & D Bancorp has increased its dividend for 10 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for First of Long Island and Fidelity D & D Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First of Long Island	0	0	1	0	3.00
Fidelity D & D Bancorp	0	0	0	0	0.00

First of Long Island currently has a consensus target price of $16.56, suggesting a potential upside of 39.39%. Given First of Long Island’s stronger consensus rating and higher possible upside, equities research analysts plainly believe First of Long Island is more favorable than Fidelity D & D Bancorp.

Risk & Volatility

First of Long Island has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Fidelity D & D Bancorp has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

48.3% of First of Long Island shares are owned by institutional investors. Comparatively, 20.0% of Fidelity D & D Bancorp shares are owned by institutional investors. 6.3% of First of Long Island shares are owned by insiders. Comparatively, 21.0% of Fidelity D & D Bancorp shares are owned by 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 First of Long Island and Fidelity D & D Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First of Long Island	9.52%	4.74%	0.43%
Fidelity D & D Bancorp	16.50%	10.49%	0.82%

Summary

Fidelity D & D Bancorp beats First of Long Island on 9 of the 17 factors compared between the two stocks.

About First of Long Island

The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations. The company offers business and small business checking, personal checking, negotiable order of withdrawal, interest on lawyer, escrow service, rent security, personal and nonpersonal money market, savings, time deposit, and individual retirement accounts. It also provides commercial and residential mortgage, commercial and industrial, small business credit scored, Small Business Administration, construction and land development, consumer, and home equity lines/loans, as well as standby letters of credit; debit or credit cards; and overdraft facilities. In addition, the company offers life insurance, investment management, trust, estate and custody, retail investment, bill payment, lockbox, ACH, safe deposit box rental, wire transfer, money order, checkbook printing, check, ATM, and online and mobile banking services. The First of Long Island Corporation was founded in 1927 and is headquartered in Melville, New York.

About Fidelity D & D Bancorp

Fidelity D&D Bancorp, Inc. is a holding company, which engages in the provision of commercial banking services. It operates through the following segments: Commercial and Industrial, Commercial Real Estate, Consumer, and Residential Real Estate. The Commercial and Industrial segment refers to identified historic and/or the projected cash flows of the borrower and secondarily to the underlying collateral provided by the borrower. The Commercial Real Estate segment offers finances purchase of real estate, refinance existing obligations, and/or to provide capital. The Consumer segment includes home equity installment loans and lines of credit. The Residential Real Estate segment operates as a secured first lien position of the borrower’s residential real estate. The company was founded in 1902 and is headquartered in Dunmore, PA.