Head to Head Contrast: Signature Bank (NASDAQ:SBNY) and CB Financial Services (NASDAQ:CBFV)

Signature Bank (NASDAQ:SBNY) and CB Financial Services (NASDAQ:CBFV) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Signature Bank and CB Financial Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Signature Bank 0 4 6 1 2.73
CB Financial Services 0 0 0 0 N/A

Signature Bank currently has a consensus target price of $137.13, indicating a potential upside of 15.89%. Given Signature Bank’s higher probable upside, equities research analysts clearly believe Signature Bank is more favorable than CB Financial Services.

Profitability

This table compares Signature Bank and CB Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Signature Bank 31.37% 13.09% 1.24%
CB Financial Services 20.31% 8.53% 0.93%

Insider and Institutional Ownership

92.7% of Signature Bank shares are owned by institutional investors. Comparatively, 26.4% of CB Financial Services shares are owned by institutional investors. 7.9% of CB Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Signature Bank pays an annual dividend of $2.24 per share and has a dividend yield of 1.9%. CB Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 3.6%. Signature Bank pays out 19.9% of its earnings in the form of a dividend. CB Financial Services pays out 56.8% 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.

Earnings and Valuation

This table compares Signature Bank and CB Financial Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Signature Bank $1.73 billion 3.75 $505.34 million $11.28 10.49
CB Financial Services $51.97 million 2.80 $7.05 million $1.69 15.86

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

Risk & Volatility

Signature Bank has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Summary

Signature Bank beats CB Financial Services on 13 of the 16 factors compared between the two stocks.

About Signature Bank

Signature Bank provides various business and personal banking products and services. It accepts various deposit products, including commercial checking accounts, money market accounts, escrow deposit accounts, cash concentration accounts, interest-bearing and non-interest-bearing checking accounts, certificates of deposit, time deposits, and other cash management products. The company also offers loan products comprising commercial and industrial loans; real estate loans, such as loans secured by commercial and residential properties, and construction and land loans; temporary financing for commercial and residential properties; letters of credit; and personal lines of credit and loans to acquire personal assets, as well as asset-based lending, mortgages, home equity loans, and credit card accounts. In addition, it provides investment, brokerage, and asset management products and services; retirement products, such as individual retirement accounts and administrative services for retirement vehicles, which include pension, profit sharing, and 401(k) plans to its clients, as well as business retirement accounts; and a range of financing and leasing products consisting of equipment, transportation, taxi medallion, commercial marine, and municipal and national franchise financing services. Further, the company offers wealth management services to its high net worth personal clients; and a range of individual and group insurance products that comprise health, life, disability, and long-term care insurance products as an agent. Additionally, it purchases, securitizes, and sells guaranteed portions of the U.S. small business administration loans. As of December 31, 2017, the company operated 30 private client offices located in the New York metropolitan area, which included Manhattan, Brooklyn, Westchester, Long Island, Queens, the Bronx, Staten Island, and Connecticut. Signature Bank was incorporated in 2000 and is headquartered in New York, New York.

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 southwestern Pennsylvania, West Virginia, and Ohio. The company's primary deposit products include demand deposits, NOW accounts, money market accounts, and savings accounts. Its loan products comprise residential real estate loans, such as one-to four-family mortgage loans, multifamily 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 provides sweep and insured money sweep, remote electronic deposit, online banking with bill pay, mobile banking, and automated clearing house services; and conducts insurance agency activities by offering property and casualty, commercial liability, surety, and other insurance products. As of February 20, 2019, it operated 16 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland counties in southwestern Pennsylvania; 7 offices in Brooke, Marshall, Ohio, Upshur, and Wetzel counties in West Virginia; and 1 office in Belmont County in Ohio. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.

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