Critical Analysis: M&F Bancorp (OTCMKTS:MFBP) & QNB (OTCMKTS:QNBC)

Valuation and Earnings

This table compares M&F Bancorp and QNB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M&F Bancorp	$29.33 million	1.26	$4.77 million	N/A	N/A
QNB	$90.98 million	1.38	$11.45 million	$3.10	10.92

QNB has higher revenue and earnings than M&F Bancorp.

Profitability

This table compares M&F Bancorp and QNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M&F Bancorp	N/A	N/A	N/A
QNB	12.24%	11.05%	0.62%

Risk & Volatility

M&F Bancorp has a beta of -0.45, meaning that its stock price is 145% less volatile than the S&P 500. Comparatively, QNB has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

0.7% of QNB shares are held by institutional investors. 2.9% of M&F Bancorp shares are held by company insiders. Comparatively, 14.5% of QNB shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

M&F Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. QNB pays an annual dividend of $1.52 per share and has a dividend yield of 4.5%. QNB pays out 49.0% of its earnings in the form of a dividend.

Summary

QNB beats M&F Bancorp on 10 of the 11 factors compared between the two stocks.

About M&F Bancorp

M&F Bancorp, Inc. operates as a bank holding company for the Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. It offers deposit products, including demand deposits; checking, savings, and money market accounts, as well as certificates of deposit. The company provides loans for commercial and residential real estate, and construction; and consumer and other loans; as well as ATM services. M&F Bancorp, Inc. was founded in 1907 and is headquartered in Durham, North Carolina.

About QNB

QNB Corp. operates as the bank holding company for QNB Bank that engages in the provision of commercial and retail banking products, and retail brokerage services. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; credit cards and insurance products; merchant services; ATM and debit card services; and internet and mobile-banking, electronic bill pay, and remote deposit capture services. The company serves other community banks, thrift institutions, credit unions and other non-bank financial organizations, such as mutual fund companies, insurance companies, and brokerage companies. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.