Analyzing CNB Financial (NASDAQ:CCNE) and LINKBANCORP (NASDAQ:LNKB)

LINKBANCORP (NASDAQ:LNKB) and CNB Financial (NASDAQ:CCNE) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Institutional and Insider Ownership

37.5% of LINKBANCORP shares are held by institutional investors. Comparatively, 52.4% of CNB Financial shares are held by institutional investors. 37.5% of LINKBANCORP 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.

Dividends

LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 3.7%. CNB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. LINKBANCORP pays out 29.4% of its earnings in the form of a dividend. CNB Financial pays out 36.2% 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 has increased its dividend for 1 consecutive years. LINKBANCORP is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares LINKBANCORP and CNB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LINKBANCORP	20.81%	10.28%	1.03%
CNB Financial	11.92%	10.38%	0.95%

Earnings and Valuation

This table compares LINKBANCORP and CNB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LINKBANCORP	$167.59 million	1.83	$26.21 million	$1.02	8.03
CNB Financial	$364.58 million	2.08	$54.58 million	$1.99	12.93

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

Volatility and Risk

LINKBANCORP has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for LINKBANCORP and CNB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LINKBANCORP	0	3	0	0	2.00
CNB Financial	0	2	1	1	2.75

LINKBANCORP currently has a consensus target price of $9.63, indicating a potential upside of 17.52%. CNB Financial has a consensus target price of $27.75, indicating a potential upside of 7.81%. Given LINKBANCORP’s higher probable upside, research analysts plainly believe LINKBANCORP is more favorable than CNB Financial.

Summary

CNB Financial beats LINKBANCORP on 12 of the 18 factors compared between the two stocks.

About LINKBANCORP

LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.

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 private banking; and 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 offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.