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

Earnings & Valuation

This table compares CB Financial Services and BankFinancial Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CB Financial Services $34.49 million 3.47 $7.07 million $1.73 16.91
BankFinancial Corporation $55.23 million 5.36 $8.98 million $0.49 32.98

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

Risk & Volatility

CB Financial Services has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, BankFinancial Corporation has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for CB Financial Services and BankFinancial Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CB Financial Services 0 1 1 0 2.50
BankFinancial Corporation 0 1 1 0 2.50

CB Financial Services currently has a consensus target price of $30.00, indicating a potential upside of 2.56%. BankFinancial Corporation has a consensus target price of $17.00, indicating a potential upside of 5.20%. Given BankFinancial Corporation’s higher probable upside, analysts clearly believe BankFinancial Corporation is more favorable than CB Financial Services.

Institutional & Insider Ownership

20.0% of CB Financial Services shares are owned by institutional investors. Comparatively, 62.4% of BankFinancial Corporation shares are owned by institutional investors. 9.0% of CB Financial Services shares are owned by insiders. Comparatively, 15.5% of BankFinancial Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
CB Financial Services 18.04% 7.85% 0.83%
BankFinancial Corporation 15.58% 4.55% 0.58%

Dividends

CB Financial Services pays an annual dividend of $0.88 per share and has a dividend yield of 3.0%. BankFinancial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. CB Financial Services pays out 50.9% of its earnings in the form of a dividend. BankFinancial Corporation pays out 57.1% 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. CB Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

BankFinancial Corporation beats CB Financial Services on 8 of the 14 factors compared between the two stocks.

About CB Financial Services

CB Financial Services, Inc. is the bank holding company for Community Bank (the Bank). The Company operates in community banking segment. The Bank offers residential and commercial real estate loans, commercial and industrial loans, and consumer loans, as well as a range of deposit products for individuals and businesses in its market area. The Bank operates through a network of approximately 20 offices in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania. The Company’s principal lending activity is the origination of residential loans secured by one- to four-family residential properties in its local market area. In addition, the Bank offers property and casualty, commercial liability, surety and other insurance products, through its subsidiary, Exchange Underwriters, Inc. (Exchange Underwriters), an independent insurance agency.

About BankFinancial Corporation

BankFinancial Corporation is the bank holding company for BankFinancial, National Association (the Bank). The Bank is a full-service, community-oriented national bank principally engaged in the business of commercial, family and personal banking. The Bank offers its customers a range of loan, deposit and other financial products and services through its full-service Illinois-based banking offices located in Cook, DuPage, Lake and Will Counties, and through its Internet branch, www.bankfinancial.com. As of December 31, 2016, the Bank had 19 full-service Illinois-based banking offices. The Bank also offers its customers a range of financial products and services that are related or ancillary to loans and deposits, including cash management, funds transfers, bill payment, and other online and mobile banking transactions, automated teller machines, safe deposit boxes, trust services, wealth management and general insurance agency services.

Receive News & Stock Ratings for CB Financial Services Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CB Financial Services Inc. and related stocks with our FREE daily email newsletter.