Contrasting Bank7 (NASDAQ:BSVN) and Commonwealth Business Bank (OTCMKTS:CBBI)

Commonwealth Business Bank (OTCMKTS:CBBI) and Bank7 (NASDAQ:BSVN) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

23.5% of Bank7 shares are owned by institutional investors. 25.8% of Bank7 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Commonwealth Business Bank and Bank7″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commonwealth Business Bank	$122.69 million	N/A	$22.43 million	$2.00	5.23
Bank7	$142.79 million	2.78	$45.70 million	$4.71	8.92

Bank7 has higher revenue and earnings than Commonwealth Business Bank. Commonwealth Business Bank is trading at a lower price-to-earnings ratio than Bank7, indicating that it is currently the more affordable of the two stocks.

Dividends

Commonwealth Business Bank pays an annual dividend of $0.40 per share and has a dividend yield of 3.8%. Bank7 pays an annual dividend of $0.96 per share and has a dividend yield of 2.3%. Commonwealth Business Bank pays out 20.0% of its earnings in the form of a dividend. Bank7 pays out 20.4% 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. Bank7 has raised its dividend for 5 consecutive years. Commonwealth Business Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Commonwealth Business Bank has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Bank7 has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Commonwealth Business Bank and Bank7, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commonwealth Business Bank	0	0	0	0	0.00
Bank7	0	0	2	0	3.00

Bank7 has a consensus target price of $51.00, indicating a potential upside of 21.43%. Given Bank7’s stronger consensus rating and higher possible upside, analysts clearly believe Bank7 is more favorable than Commonwealth Business Bank.

Profitability

This table compares Commonwealth Business Bank and Bank7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commonwealth Business Bank	17.49%	N/A	N/A
Bank7	32.03%	21.57%	2.58%

Summary

Bank7 beats Commonwealth Business Bank on 14 of the 16 factors compared between the two stocks.

About Commonwealth Business Bank

CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking products and services to individuals and businesses in the United States. It offers checking, savings, money market, and certification of deposit accounts; SBA lending; business lines of credit; business term loans; business and commercial property loans; construction loans; and credit cards. The company also provides treasury management, and mobile and online banking services, as well as title and escrow services. In addition, it engages in investing activities; and offers trade finance services, including commercial letters of credit, standby letters of credit, and documentary collection services. The company offers its services through full-service and limited-service branches in Southern California, Dallas, Texas and Honolulu, and Hawaii; and loan production offices in the states of Colorado, Georgia, Texas, and Washington. CBB Bancorp, Inc. was founded in 2005 and is headquartered in Los Angeles, California.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.