LCNB (LCNB) and Cullen/Frost Bankers (CFR) Financial Review

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LCNB (NASDAQ:LCNB) and Cullen/Frost Bankers (NYSE:CFR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

28.3% of LCNB shares are owned by institutional investors. Comparatively, 78.8% of Cullen/Frost Bankers shares are owned by institutional investors. 4.1% of LCNB shares are owned by company insiders. Comparatively, 4.6% of Cullen/Frost Bankers shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.


LCNB pays an annual dividend of $0.64 per share and has a dividend yield of 3.5%. Cullen/Frost Bankers pays an annual dividend of $2.68 per share and has a dividend yield of 2.8%. LCNB pays out 50.4% of its earnings in the form of a dividend. Cullen/Frost Bankers pays out 49.2% 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. Cullen/Frost Bankers has increased its dividend for 25 consecutive years.

Volatility and Risk

LCNB has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Cullen/Frost Bankers has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.


This table compares LCNB and Cullen/Frost Bankers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LCNB 20.37% 8.60% 1.04%
Cullen/Frost Bankers 31.38% 13.08% 1.31%

Earnings & Valuation

This table compares LCNB and Cullen/Frost Bankers’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LCNB $54.92 million 4.39 $12.97 million $1.27 14.28
Cullen/Frost Bankers $1.23 billion 4.91 $364.14 million $5.45 17.35

Cullen/Frost Bankers has higher revenue and earnings than LCNB. LCNB is trading at a lower price-to-earnings ratio than Cullen/Frost Bankers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for LCNB and Cullen/Frost Bankers, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCNB 0 1 0 0 2.00
Cullen/Frost Bankers 2 8 3 0 2.08

Cullen/Frost Bankers has a consensus price target of $115.00, suggesting a potential upside of 21.64%. Given Cullen/Frost Bankers’ stronger consensus rating and higher probable upside, analysts clearly believe Cullen/Frost Bankers is more favorable than LCNB.


Cullen/Frost Bankers beats LCNB on 16 of the 17 factors compared between the two stocks.

About LCNB

LCNB Corp., a financial holding company, provides commercial and personal banking services in Ohio. Its deposit products include checking, NOW, savings, Christmas and vacation club, money market deposit, lifetime checking, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises commercial and industrial, commercial and residential real estate, agricultural, construction, small business administration, and residential mortgage loans. It also offers consumer loans, such as automobile, boat, home improvement, and personal loans. In addition, the company provides trust administrative, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, personal computer-based cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. As of December 31, 2017, the company operated through 34 offices, including a main office in Warren County; branch offices in Warren, Butler, Clinton, Clermont, Hamilton, Montgomery, Preble, Ross, and Fayette Counties; a loan production office in Franklin County; and an operations center in Warren County, Ohio, as well as 38 ATMs. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. The company operates in two segments, Banking and Frost Wealth Advisors. It provides commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction, equipment, inventories and accounts receivable, and acquisition financing; commercial leasing; and treasury management services. The company also offers consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. Its international banking services comprise accepting deposits, making loans, issuing letter of credits, handling foreign collections, transmitting funds, and dealing in foreign exchange. In addition, the company acts as correspondent for approximately 203 financial institutions; offers trust, investment, agency, and custodial services for individual and corporate clients; provides capital market services consisting of sales and trading, new issue underwriting, money market trading, advisory services, and securities safekeeping and clearance; and supports international business activities. Further, it offers insurance and securities brokerage services; holds securities for investment purposes; and provides loans to qualified borrowers, as well as offers investment management services to Frost-managed mutual funds, institutions, and individuals. The company operates approximately 134 financial centers and approximately 1,300 ATMs in Texas. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. Cullen/Frost Bankers, Inc. was founded in 1868 and is headquartered in San Antonio, Texas.

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