Over the last 7 days, the United States market has remained flat, yet it has experienced an impressive 18% rise over the past year with earnings forecasted to grow by 17% annually. In this context of steady growth and positive outlooks, identifying small-cap stocks with strong fundamentals and insider activity can be a strategic approach for investors seeking potential opportunities.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Regional Management | 6.3x | 0.5x | 36.32% | ★★★★★★ |
| Onterris | NA | 0.8x | 49.62% | ★★★★★☆ |
| Enovis | NA | 0.6x | 25.34% | ★★★★★☆ |
| Bank of Marin Bancorp | NA | 7.0x | 32.41% | ★★★★☆☆ |
| Bank of the James Financial Group | 10.7x | 2.4x | 27.85% | ★★★★☆☆ |
| Auburn National Bancorporation | 10.9x | 2.7x | 9.24% | ★★★☆☆☆ |
| German American Bancorp | 13.0x | 4.9x | 26.17% | ★★★☆☆☆ |
| Franklin Financial Services | 11.3x | 3.1x | -38.90% | ★★★☆☆☆ |
| Peoples Financial | 30.3x | 4.1x | 30.07% | ★★★☆☆☆ |
| Orion Group Holdings | 105.6x | 0.4x | 43.65% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Franklin Financial Services (FRAF)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Franklin Financial Services operates primarily in community banking and wealth management, with a market capitalization of $0.13 billion.
Operations: Franklin Financial Services generates revenue primarily from community banking and wealth management, with community banking contributing a significant portion. The company's operating expenses are largely driven by general and administrative costs, which consistently form the majority of the total expenses. Over time, the net income margin has shown variability, reflecting changes in profitability.
PE: 11.3x
Franklin Financial Services, a smaller player in the financial sector, has shown promising growth with net interest income rising to US$19.35 million in Q2 2026 from US$17.24 million the previous year. Insider confidence is evident as shares were purchased between April and June 2026, totaling 10,950 shares for US$0.63 million. Earnings are projected to grow at an annual rate of 12.46%, indicating potential for future value appreciation amidst consistent dividend payouts and strategic buybacks.
- Delve into the full analysis valuation report here for a deeper understanding of Franklin Financial Services.
Learn about Franklin Financial Services' historical performance.
LCNB (LCNB)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: LCNB is a financial institution primarily engaged in commercial banking and insurance agency operations, with a market capitalization of approximately $0.17 billion.
Operations: LCNB generates revenue primarily from its commercial banking and insurance agency operations, with a recent quarterly revenue of $92.04 million. The company has consistently achieved a gross profit margin of 100%. Operating expenses, including general and administrative costs, are significant components impacting net income levels.
PE: 11.3x
LCNB's recent financials reveal a promising trajectory with net interest income rising to US$19.79 million in Q2 2026 from US$17.54 million the previous year, and net income climbing to US$7.49 million from US$5.92 million, illustrating its potential for growth among smaller companies. Insider confidence is evident with strategic board appointments like Susan B. Zaunbrecher, enhancing governance and strategic leadership capabilities. The company also issued $25 million in subordinated notes for future growth initiatives, signaling ambition amid its dividend affirmations of $0.22 per share for Q3 2026.
- Take a closer look at LCNB's potential here in our valuation report.
Assess LCNB's past performance with our detailed historical performance reports.
Hawthorn Bancshares (HWBK)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Hawthorn Bancshares operates as a bank holding company primarily through its subsidiary, Hawthorn Bank, and has a market capitalization of $142.36 million.
Operations: Hawthorn's primary revenue stream is generated from Hawthorn Bank, contributing $82.89 million, while Wealth Management adds $2.42 million. The company consistently achieves a gross profit margin of 100%, with operating expenses primarily driven by general and administrative costs, which reached up to $39.13 million in recent periods. Net income margins have shown variability, peaking at 30.30% but also experiencing lower levels such as 1.81%.
PE: 10.6x
Hawthorn Bancshares, a smaller player in the financial sector, has shown signs of being undervalued. Despite earnings declining by 1% annually over five years, recent insider confidence is evident with share purchases in early 2026. For Q2 ending June 30, net interest income rose to US$17.26 million from US$16.14 million last year, while net income increased to US$7.33 million from US$6.1 million. A steady dividend of US$0.21 per share was affirmed for October 2026 amidst rising loan charge-offs reaching $138K compared to $51K previously.
Make It Happen
- Access the full spectrum of 60 Undervalued US Small Caps With Insider Buying by clicking on this link.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Contemplating Other Strategies?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com