Reviewing Franklin Financial Network (NYSE:FSB) and Dimeco (NYSE:DIMC)

Franklin Financial Network (NYSE:FSB) and Dimeco (OTCMKTS:DIMC) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Risk & Volatility

Franklin Financial Network has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Dimeco has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Profitability

This table compares Franklin Financial Network and Dimeco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Financial Network 11.40% 8.23% 0.74%
Dimeco N/A N/A N/A

Dividends

Franklin Financial Network pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Dimeco pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. Franklin Financial Network pays out 5.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Franklin Financial Network and Dimeco, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Financial Network 1 2 2 0 2.20
Dimeco 0 0 0 0 N/A

Franklin Financial Network presently has a consensus price target of $33.50, suggesting a potential downside of 0.74%. Given Franklin Financial Network’s higher probable upside, research analysts clearly believe Franklin Financial Network is more favorable than Dimeco.

Institutional and Insider Ownership

64.3% of Franklin Financial Network shares are held by institutional investors. 11.7% of Franklin Financial Network shares are held by insiders. Comparatively, 19.0% of Dimeco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Franklin Financial Network and Dimeco’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franklin Financial Network $180.61 million 2.73 $34.51 million $2.71 12.45
Dimeco $33.40 million N/A $7.99 million N/A N/A

Franklin Financial Network has higher revenue and earnings than Dimeco.

Summary

Franklin Financial Network beats Dimeco on 9 of the 12 factors compared between the two stocks.

About Franklin Financial Network

Franklin Financial Network, Inc. operates as the bank holding company for Franklin Synergy Bank that provides banking and related financial services to small businesses, corporate entities, local governments, and individuals. Its deposit products include checking, savings, and certificate of deposit accounts; and demand deposits, interest-bearing transaction accounts, money market accounts, and municipal deposits. The company also provides construction and land development, commercial real estate, residential real estate, commercial and industrial, and consumer and other loans. In addition, it offers retirement planning, financial planning, and investment services, as well as insurance products; and Internet banking, remote deposit capture, lockbox, and treasury management services. The company operates through 15 branches and a loan production office in the Williamson, Rutherford, and Davidson counties in the Nashville metropolitan area. Franklin Financial Network, Inc. was founded in 2007 and is headquartered in Franklin, Tennessee.

About Dimeco

Dimeco, Inc. operates as a bank holding company for The Dime Bank that provides various financial services and solutions to individuals and businesses in the United States. The company accepts various deposits, including checking, savings, holiday club, personal money market, and individual retirement accounts; certificates of deposits; and education savings accounts. It also provides personal, mortgage, home equity, lot, auto, business term, vehicle, equipment, capital improvement, and commercial real estate loans; business line of credit; and acquisition financing services. In addition, the company offers business services, such as cash management, check recovery, remote deposit, and merchant services; retirement products and services, mutual funds, educational savings plans, brokerage service for individual stocks and bonds, money management services, advisory services, and financial and estate planning services; and trust and estate settlement services. Further, it provides financial ED services; e-services, such as online banking and bill pay, mobile banking, mobile deposit, interbank transfer, money manager, and e-statement services; additional services, including telephone banking, ATM, bank by mail, direct deposit, coin machine, night drop banking, automated payment and savings, and wire transfer services; safe deposit boxes; stamps; and debit and credit cards. The company operates seven full-service branches in Honesdale, Hawley, Damascus, Greentown, Dingmans Ferry, and Carbondale, Pennsylvania; and an operations center in Honesdale, Pennsylvania. Dimeco, Inc. was founded in 1905 and is headquartered in Honesdale, Pennsylvania.

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