CNB Financial (NASDAQ: CCNE) and MainSource Financial Group (NASDAQ:MSFG) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
CNB Financial pays an annual dividend of $0.66 per share and has a dividend yield of 2.1%. MainSource Financial Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.8%. CNB Financial pays out 37.3% of its earnings in the form of a dividend. MainSource Financial Group pays out 34.0% 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.
43.4% of CNB Financial shares are held by institutional investors. Comparatively, 58.5% of MainSource Financial Group shares are held by institutional investors. 4.2% of CNB Financial shares are held by insiders. Comparatively, 4.8% of MainSource Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
CNB Financial has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, MainSource Financial Group has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.
This table compares CNB Financial and MainSource Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MainSource Financial Group||23.33%||10.64%||1.21%|
Valuation & Earnings
This table compares CNB Financial and MainSource Financial Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CNB Financial||$130.31 million||3.61||$23.86 million||$1.77||17.40|
|MainSource Financial Group||$211.91 million||4.91||$49.43 million||$2.12||19.17|
MainSource Financial Group has higher revenue and earnings than CNB Financial. CNB Financial is trading at a lower price-to-earnings ratio than MainSource Financial Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for CNB Financial and MainSource Financial Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MainSource Financial Group||0||2||0||0||2.00|
CNB Financial currently has a consensus target price of $32.25, suggesting a potential upside of 4.71%. MainSource Financial Group has a consensus target price of $44.50, suggesting a potential upside of 9.47%. Given MainSource Financial Group’s higher possible upside, analysts plainly believe MainSource Financial Group is more favorable than CNB Financial.
MainSource Financial Group beats CNB Financial on 12 of the 16 factors compared between the two stocks.
CNB Financial Company Profile
CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. It accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. The company also provides trust and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, it invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment. As of February 13, 2018, the company operated 31 full-service offices in Pennsylvania and northeast Ohio; 7 full-service offices and 1 loan production office in central Ohio; and 3 full-service offices in northwest New York. CNB Financial Corporation was founded in 1865 and is headquartered in Clearfield, Pennsylvania.
MainSource Financial Group Company Profile
MainSource Financial Group, Inc. is a bank holding company. The Company operates a banking subsidiary, MainSource Bank (the Bank), an Indiana state-chartered bank. Through the Bank, the Company offers a range of financial services, including accepting time and transaction deposits; making consumer, commercial, agribusiness and real estate mortgage loans; renting safe deposit facilities; providing personal and corporate trust services, and providing other corporate services, such as letters of credit and repurchase agreements. The Bank offers various loans, such as commercial loans, commercial real estate loans, residential loans and consumer loans. Commercial loans include secured and unsecured loans, including real estate loans, to individuals and companies and to governmental units within the market area of the Bank. It offers various deposits, which include demand, interest bearing demand, savings/money markets and certificates of deposit.
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