CB Financial Services (NASDAQ:CBFV) vs. SB Financial Group (NASDAQ:SBFG) Head-To-Head Contrast

CB Financial Services (NASDAQ:CBFV) and SB Financial Group (NASDAQ:SBFG) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Valuation & Earnings

This table compares CB Financial Services and SB Financial Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CB Financial Services	$86.24 million	1.42	$22.55 million	$4.40	5.40
SB Financial Group	$75.87 million	1.45	$12.10 million	$1.75	9.29

CB Financial Services has higher revenue and earnings than SB Financial Group. CB Financial Services is trading at a lower price-to-earnings ratio than SB Financial Group, indicating that it is currently the more affordable of the two stocks.

Dividends

CB Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. SB Financial Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.4%. CB Financial Services pays out 22.7% of its earnings in the form of a dividend. SB Financial Group pays out 32.0% 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. SB Financial Group has raised its dividend for 11 consecutive years. CB Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CB Financial Services and SB Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CB Financial Services	24.64%	8.79%	0.80%
SB Financial Group	15.27%	9.95%	0.89%

Institutional and Insider Ownership

33.1% of CB Financial Services shares are owned by institutional investors. Comparatively, 66.7% of SB Financial Group shares are owned by institutional investors. 9.4% of CB Financial Services shares are owned by company insiders. Comparatively, 4.1% of SB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CB Financial Services and SB Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CB Financial Services	0	3	0	0	2.00
SB Financial Group	0	0	0	0	N/A

CB Financial Services currently has a consensus target price of $24.67, indicating a potential upside of 3.86%. Given CB Financial Services’ higher possible upside, analysts clearly believe CB Financial Services is more favorable than SB Financial Group.

Volatility and Risk

CB Financial Services has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, SB Financial Group has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Summary

CB Financial Services beats SB Financial Group on 8 of the 15 factors compared between the two stocks.

About CB Financial Services

CB Financial Services, Inc. operates as the bank holding company for Community Bank that provides various banking products and services for individuals and businesses in southwestern Pennsylvania, West Virginia, and Ohio. The company's primary deposit products include demand deposits, NOW accounts, money market accounts, and savings accounts, as well as time deposit products. Its loan products comprise residential real estate loans, such as one- to four-family mortgage loans, home equity installment loans, and home equity lines of credit; commercial real estate loans that are secured primarily by improved properties, such as retail facilities, office buildings, and other non-residential buildings; construction loans to individuals to finance the construction of residential dwellings, as well as for the construction of commercial properties, including hotels, apartment buildings, housing developments, and owner-occupied properties used for businesses; commercial and industrial loans, and lines of credit; consumer loans consisting of indirect auto loans, secured and unsecured loans, and lines of credit; and other loans. In addition, the company conducts insurance agency activities by offering property and casualty, commercial liability, surety, and other insurance products. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.

About SB Financial Group

SB Financial Group, Inc. operates as the financial holding company for the State Bank and Trust Company that provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was founded in 1902 and is based in Defiance, Ohio.