First Bank (NASDAQ:FRBA – Get Free Report) and CNB Financial (NASDAQ:CCNE – Get Free Report) are both small-cap financial services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
This table compares First Bank and CNB Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares First Bank and CNB Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Bank||$97.72 million||2.50||$36.29 million||$1.12||11.15|
|CNB Financial||$248.50 million||1.78||$63.19 million||$2.64||8.00|
Insider & Institutional Ownership
47.5% of First Bank shares are held by institutional investors. Comparatively, 56.1% of CNB Financial shares are held by institutional investors. 13.1% of First Bank shares are held by insiders. Comparatively, 2.8% of CNB Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings for First Bank and CNB Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
First Bank presently has a consensus target price of $14.00, indicating a potential upside of 12.13%. CNB Financial has a consensus target price of $24.00, indicating a potential upside of 13.64%. Given CNB Financial’s higher probable upside, analysts clearly believe CNB Financial is more favorable than First Bank.
Risk and Volatility
First Bank has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
First Bank pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. CNB Financial pays an annual dividend of $0.70 per share and has a dividend yield of 3.3%. First Bank pays out 21.4% of its earnings in the form of a dividend. CNB Financial pays out 26.5% 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.
CNB Financial beats First Bank on 9 of the 16 factors compared between the two stocks.
About First Bank
First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. Its loan products include commercial and industrial loans; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans that include auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; and Doylestown, Trevose, Warminster, and West Chester, Pennsylvania. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.
About CNB Financial
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. The company 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. It also provides wealth 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, the company 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. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.
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