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

Dividends

BankFinancial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. CB Financial Services pays an annual dividend of $0.88 per share and has a dividend yield of 3.1%. BankFinancial Corporation pays out 57.1% of its earnings in the form of a dividend. CB Financial Services pays out 50.9% 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.

Profitability

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

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

Valuation and Earnings

This table compares BankFinancial Corporation and CB Financial Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BankFinancial Corporation $55.23 million 5.33 $8.98 million $0.49 32.78
CB Financial Services $34.49 million 3.32 $7.07 million $1.73 16.18

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.

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of current recommendations and price targets for BankFinancial Corporation and CB Financial Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BankFinancial Corporation 0 0 1 0 3.00
CB Financial Services 0 1 1 0 2.50

BankFinancial Corporation currently has a consensus target price of $17.00, suggesting a potential upside of 5.85%. CB Financial Services has a consensus target price of $30.00, suggesting a potential upside of 7.14%. Given CB Financial Services’ higher probable upside, analysts plainly believe CB Financial Services is more favorable than BankFinancial Corporation.

Risk & Volatility

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

Summary

BankFinancial Corporation beats CB Financial Services on 8 of the 15 factors compared between the two stocks.

BankFinancial Corporation Company Profile

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.

CB Financial Services Company Profile

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.

Receive News & Ratings for BankFinancial Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BankFinancial Corporation and related companies with MarketBeat.com's FREE daily email newsletter.