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

Insider & Institutional Ownership

44.5% of CNB Financial shares are held by institutional investors. Comparatively, 42.2% of First Western Financial shares are held by institutional investors. 3.0% of CNB Financial shares are held by insiders. Comparatively, 24.4% of First Western Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

CNB Financial has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for CNB Financial and First Western Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNB Financial 0 0 2 0 3.00
First Western Financial 0 0 1 0 3.00

CNB Financial presently has a consensus target price of $31.00, suggesting a potential upside of 72.32%. First Western Financial has a consensus target price of $21.00, suggesting a potential upside of 66.53%. Given CNB Financial’s higher probable upside, equities research analysts plainly believe CNB Financial is more favorable than First Western Financial.

Valuation and Earnings

This table compares CNB Financial and First Western Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNB Financial $181.70 million 1.52 $40.08 million $2.63 6.84
First Western Financial $77.63 million 1.29 $8.01 million N/A N/A

CNB Financial has higher revenue and earnings than First Western Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
CNB Financial 22.06% 13.78% 1.15%
First Western Financial 9.38% 7.42% 0.76%

Summary

CNB Financial beats First Western Financial on 10 of the 12 factors compared between the two stocks.

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 trust 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 small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment. As of February 12, 2019, the company operated a private banking division; and 42 full-service offices in Pennsylvania, Ohio, and New York. CNB Financial Corporation was founded in 1865 and is headquartered in Clearfield, Pennsylvania.

About First Western Financial

First Western Financial, Inc., a financial holding company, through its subsidiaries, provides an integrated suite of wealth management services comprising private banking, personal trust, investment management, mortgage loans, and institutional asset management services. It operates through three segments: Wealth Management, Capital Management, and Mortgage. The Wealth Management segment provides deposit, loan, insurance, and trust and investment management advisory products and services. The Capital Management offers institutional investment management services; and acts as advisor of proprietary mutual funds. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. The company serves entrepreneurs, professionals, and high-net worth individuals and their related philanthropic and business organizations through a network of boutique private trust bank offices in Colorado, Arizona, Wyoming, and California. First Western Financial, Inc. was founded in 2002 and is headquartered in Denver, Colorado.

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