LCNB (NASDAQ:LCNB) & CB Financial Services (NASDAQ:CBFV) Head to Head Comparison

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

Institutional and Insider Ownership

33.1% of CB Financial Services shares are held by institutional investors. Comparatively, 34.7% of LCNB shares are held by institutional investors. 10.2% of CB Financial Services shares are held by insiders. Comparatively, 5.7% of LCNB shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

CB Financial Services pays an annual dividend of $1.12 per share and has a dividend yield of 2.9%. LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 5.0%. CB Financial Services pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LCNB pays out 54.7% of its earnings in the form of a dividend. LCNB has increased its dividend for 7 consecutive years. LCNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

CB Financial Services has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, LCNB has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Valuation and Earnings

This table compares CB Financial Services and LCNB”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CB Financial Services	$80.52 million	2.40	$4.90 million	$1.29	29.50
LCNB	$124.52 million	2.01	$23.12 million	$1.61	10.89

LCNB has higher revenue and earnings than CB Financial Services. LCNB 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CB Financial Services	8.32%	10.07%	1.00%
LCNB	18.50%	8.48%	1.02%

Analyst Recommendations

This is a breakdown of current ratings and price targets for CB Financial Services and LCNB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CB Financial Services	0	2	2	0	2.50
LCNB	0	0	1	0	3.00

CB Financial Services currently has a consensus price target of $41.00, indicating a potential upside of 7.72%. Given CB Financial Services’ higher possible upside, equities research analysts plainly believe CB Financial Services is more favorable than LCNB.

Summary

LCNB beats CB Financial Services on 11 of the 17 factors compared between the two stocks.

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.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.