Financial Analysis: CNB Financial (NASDAQ:CCNE) & FVCBankcorp (NASDAQ:FVCB)

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

Insider & Institutional Ownership

43.6% of FVCBankcorp shares are owned by institutional investors. Comparatively, 52.3% of CNB Financial shares are owned by institutional investors. 14.0% of FVCBankcorp shares are owned by insiders. Comparatively, 2.8% of CNB Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FVCBankcorp	$43.99 million	5.23	$3.82 million	$0.24	53.25
CNB Financial	$216.67 million	2.38	$58.02 million	$2.38	10.32

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

Volatility and Risk

FVCBankcorp has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for FVCBankcorp and CNB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FVCBankcorp	0	0	0	0	N/A
CNB Financial	0	1	0	0	2.00

CNB Financial has a consensus price target of $22.00, suggesting a potential downside of 10.39%. Given CNB Financial’s higher possible upside, analysts clearly believe CNB Financial is more favorable than FVCBankcorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FVCBankcorp	4.44%	7.16%	0.70%
CNB Financial	15.30%	10.37%	0.92%

Summary

CNB Financial beats FVCBankcorp on 9 of the 12 factors compared between the two stocks.

About FVCBankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

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.