Analyzing SB Financial Group (NASDAQ:SBFG) and CB Financial Services (NASDAQ:CBFV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SB Financial Group	15.27%	9.95%	0.89%
CB Financial Services	24.64%	8.79%	0.80%

Analyst Ratings

This is a summary of recent ratings for SB Financial Group and CB Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SB Financial Group	0	0	0	0	N/A
CB Financial Services	0	3	0	0	2.00

CB Financial Services has a consensus price target of $24.67, indicating a potential upside of 3.86%. Given CB Financial Services’ higher probable upside, analysts plainly believe CB Financial Services is more favorable than SB Financial Group.

Valuation and Earnings

This table compares SB Financial Group and CB Financial Services’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SB Financial Group	$75.87 million	1.45	$12.10 million	$1.75	9.29
CB Financial Services	$86.24 million	1.42	$22.55 million	$4.40	5.40

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

Insider & Institutional Ownership

66.7% of SB Financial Group shares are held by institutional investors. Comparatively, 33.1% of CB Financial Services shares are held by institutional investors. 4.1% of SB Financial Group shares are held by company insiders. Comparatively, 9.4% of CB Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

SB Financial Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.4%. CB Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. SB Financial Group pays out 32.0% of its earnings in the form of a dividend. CB Financial Services pays out 22.7% 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. SB Financial Group has raised its dividend for 11 consecutive years. CB Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

SB Financial Group has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Summary

CB Financial Services beats SB Financial Group on 8 of the 15 factors compared between the two stocks.

About SB Financial Group

SB Financial Group, Inc. operates as the financial holding company for the State Bank and Trust Company that provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was founded in 1902 and is based in Defiance, Ohio.

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 in southwestern Pennsylvania, West Virginia, and Ohio. The company's primary deposit products include demand deposits, NOW accounts, money market accounts, and savings accounts, as well as time deposit products. Its loan products comprise residential real estate loans, such as one- to four-family 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 conducts insurance agency activities by offering property and casualty, commercial liability, surety, and other insurance products. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.