Comparing CB Financial Services (NASDAQ:CBFV) & Premier Financial (NASDAQ:PFC)

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

Analyst Ratings

This is a summary of current ratings and price targets for CB Financial Services and Premier Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CB Financial Services	0	2	0	0	2.00
Premier Financial	0	3	1	0	2.25

CB Financial Services currently has a consensus target price of $26.00, suggesting a potential downside of 14.89%. Premier Financial has a consensus target price of $22.50, suggesting a potential downside of 23.47%. Given CB Financial Services’ higher probable upside, analysts clearly believe CB Financial Services is more favorable than Premier Financial.

Risk and Volatility

CB Financial Services has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Premier Financial has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Dividends

CB Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Premier Financial pays an annual dividend of $1.24 per share and has a dividend yield of 4.2%. CB Financial Services pays out 41.8% of its earnings in the form of a dividend. Premier Financial pays out 62.3% 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.

Institutional and Insider Ownership

33.1% of CB Financial Services shares are owned by institutional investors. Comparatively, 66.1% of Premier Financial shares are owned by institutional investors. 9.4% of CB Financial Services shares are owned by insiders. Comparatively, 2.2% of Premier Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CB Financial Services	15.43%	7.45%	0.70%
Premier Financial	16.12%	7.66%	0.87%

Earnings & Valuation

This table compares CB Financial Services and Premier Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CB Financial Services	$81.62 million	1.92	$12.59 million	$2.39	12.78
Premier Financial	$442.88 million	2.38	$71.40 million	$1.99	14.77

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

Summary

Premier Financial beats CB Financial Services on 12 of the 16 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 Premier Financial

Premier Financial Corp., through its subsidiaries, provides various banking services. It offers demand, checking, money market, and savings accounts, as well as certificates of deposits and certificates of deposit account registry service; and investment products. The company also provides residential and commercial real estate, commercial, construction, home improvement and home equity, installment, and consumer loans. In addition, it invests in the U.S. treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities that are issued by federal agencies, residential collateralized mortgage obligations, and corporate bonds. Further, the company offers property and casualty, life, and group health insurance agency services; mezzanine funding services; and digital banking services, which include mobile banking, zelle, online bill pay, and online account opening, as well as the MoneyPass ATM network. It operates in Ohio, Michigan, Indiana, Pennsylvania, and West Virginia. The company was formerly known as First Defiance Financial Corp. and changed its name to Premier Financial Corp. in June 2020. Premier Financial Corp. was founded in 1920 and is headquartered in Defiance, Ohio.