Head to Head Survey: Community Bancorp (OTCMKTS:CMTV) vs. Fidelity D & D Bancorp (NASDAQ:FDBC)

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

Volatility & Risk

Fidelity D & D Bancorp has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Community Bancorp has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fidelity D & D Bancorp and Community Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity D & D Bancorp	$72.34 million	4.16	$18.21 million	$2.83	18.55
Community Bancorp	$54.08 million	1.74	$13.43 million	$2.24	7.58

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

Dividends

Fidelity D & D Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Community Bancorp pays an annual dividend of $0.96 per share and has a dividend yield of 5.7%. Fidelity D & D Bancorp pays out 56.5% of its earnings in the form of a dividend. Community Bancorp pays out 42.9% 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. Fidelity D & D Bancorp has raised its dividend for 10 consecutive years. Community Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

20.0% of Fidelity D & D Bancorp shares are held by institutional investors. 21.0% of Fidelity D & D Bancorp shares are held by company insiders. Comparatively, 9.3% of Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Fidelity D & D Bancorp and Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity D & D Bancorp	14.14%	11.27%	0.84%
Community Bancorp	21.48%	14.53%	1.13%

Analyst Recommendations

This is a breakdown of recent ratings for Fidelity D & D Bancorp and Community Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity D & D Bancorp	0	0	0	0	N/A
Community Bancorp	0	0	0	0	N/A

Summary

Fidelity D & D Bancorp beats Community Bancorp on 9 of the 14 factors compared between the two stocks.

About Fidelity D & D Bancorp

Fidelity D & D Bancorp, Inc. operates as the bank holding company for The Fidelity Deposit and Discount Bank that provides a range of banking, trust, and financial services to individuals, small businesses, and corporate customers. The company accepts savings, club, interest-bearing and non-interest-bearing checking, money market, and short- and long-term time deposits, as well as certificates of deposit. It also offers commercial and industrial, commercial real estate, consumer, and residential mortgage loans. In addition, the company provides alternative financial and insurance products with asset management services. The company was founded in 1902 and is headquartered in Dunmore, Pennsylvania.

About Community Bancorp

Community Bancorp. operates as the bank holding company for Community National Bank that provides financial services to individuals, businesses, nonprofit organizations, and municipalities in northern and central Vermont. It offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as standby letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, card processing, and remote deposit capture. The company also provides commercial real estate lending products, including financing for commercial developers and investors, residential builders and developers, and community development entities, including credit products to facilitate the purchase of land and/or build structures for business; to develop residential or commercial properties; and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. In addition, it offers residential real estate lending products, including fixed-rate and adjustable rate residential mortgage and home equity loans; and retail credit services, which includes personal, automobile, and boat/recreational vehicle loans. The company also provides municipal and institutional banking services, such as deposit account services, term and tax-exempt loans, and lines of credit to state and local governments, schools, charities, membership, and not-for-profit associations. Further, it offers consumer banking services, including checking accounts, savings programs, ATMs, debit and credit cards, night deposit facilities, and online, mobile and telephone banking services. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.