Reviewing CB Financial Services (NASDAQ:CBFV) and First United (NASDAQ:FUNC)

First United (NASDAQ:FUNC) 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 profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First United	21.02%	13.24%	1.25%
CB Financial Services	3.37%	8.42%	0.83%

Risk & Volatility

First United has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Valuation & Earnings

This table compares First United and CB Financial Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First United	$111.40 million	2.35	$20.57 million	$3.83	10.52
CB Financial Services	$81.62 million	2.30	$12.59 million	$0.48	77.98

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

Institutional and Insider Ownership

33.3% of First United shares are owned by institutional investors. Comparatively, 33.1% of CB Financial Services shares are owned by institutional investors. 7.9% of First United shares are owned by company insiders. Comparatively, 9.4% of CB Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

First United pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. CB Financial Services pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. First United pays out 27.2% of its earnings in the form of a dividend. CB Financial Services pays out 216.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First United has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First United and CB Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First United	0	0	2	0	3.00
CB Financial Services	0	2	1	0	2.33

First United currently has a consensus price target of $42.00, suggesting a potential upside of 4.24%. CB Financial Services has a consensus price target of $36.00, suggesting a potential downside of 3.82%. Given First United’s stronger consensus rating and higher possible upside, research analysts plainly believe First United is more favorable than CB Financial Services.

Summary

First United beats CB Financial Services on 14 of the 17 factors compared between the two stocks.

About First United

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. It offers various deposit products, which includes checking, savings, money market deposit, and regular and individual retirement accounts (IRAs), as well as certificates of deposit. The company loan portfolio includes commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings, such as restaurants and motels, retail buildings, and general purpose business space; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. It also offers access to multi-million-dollar certificates of deposit and the Intrafi cash service, including multi-million-dollar savings and demand deposits to municipalities, businesses, and consumers; and treasury management, cash sweep, and various checking services. In addition, the company provides trust services, which includes personal trust, investment agency accounts, charitable trusts, retirement accounts, including IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning; and insurance products, brokerage services, and safe deposit and night depository facilities. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.

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.