Critical Comparison: Associated Banc (NYSE:ASB) vs. CB Financial Services (NYSE:CBFV)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Associated Banc and CB Financial Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Associated Banc 2 4 1 0 1.86
CB Financial Services 0 0 0 0 N/A

Associated Banc presently has a consensus target price of $23.17, suggesting a potential upside of 11.92%. Given Associated Banc’s higher possible upside, equities analysts clearly believe Associated Banc is more favorable than CB Financial Services.

Valuation and Earnings

This table compares Associated Banc and CB Financial Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Associated Banc $1.51 billion 2.22 $333.56 million $2.03 10.20
CB Financial Services $51.97 million 2.80 $7.05 million $1.69 15.86

Associated Banc has higher revenue and earnings than CB Financial Services. Associated Banc 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.

Insider and Institutional Ownership

73.4% of Associated Banc shares are held by institutional investors. Comparatively, 26.4% of CB Financial Services shares are held by institutional investors. 2.7% of Associated Banc shares are held by insiders. Comparatively, 7.9% of CB Financial Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Associated Banc pays an annual dividend of $0.68 per share and has a dividend yield of 3.3%. CB Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 3.6%. Associated Banc pays out 33.5% of its earnings in the form of a dividend. CB Financial Services pays out 56.8% 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.

Volatility and Risk

Associated Banc has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Associated Banc 22.01% 9.86% 1.05%
CB Financial Services 18.31% 7.61% 0.83%

Summary

Associated Banc beats CB Financial Services on 11 of the 15 factors compared between the two stocks.

Associated Banc Company Profile

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. Its Corporate and Commercial Specialty segment offers deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; and lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and loan syndications. This segment also provides specialized financial services comprising interest rate risk management, foreign exchange solutions, and commodity hedging. The company's Community, Consumer, and Business segment offers checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; savings, money market deposit accounts, IRA accounts, certificates of deposit, and fixed and variable annuities, as well as full-service, discount, and online investment brokerage; investment advisory services; trust and investment management accounts; and insurance and other related products and services. This segment also engages in the administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services. Its Risk Management and Shared Services segment provides corporate risk management, credit administration, finance, treasury, operations, and technology services. As of April 30, 2019, the company operated approximately 230 banking locations serving approximately 110 communities. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

CB Financial Services Company Profile

CB Financial Services, Inc. operates as the bank holding company for Community Bank that provides various banking products and services for individuals and businesses southwestern Pennsylvania, West Virginia, and Ohio. The company's primary deposit products include demand deposits, NOW accounts, money market accounts, and savings accounts. Its loan products comprise residential real estate loans, such as one-to four-family mortgage loans, multifamily 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 provides sweep and insured money sweep, remote electronic deposit, online banking with bill pay, mobile banking, and automated clearing house services; and conducts insurance agency activities by offering property and casualty, commercial liability, surety, and other insurance products. As of February 20, 2019, it operated 16 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland counties in southwestern Pennsylvania; 7 offices in Brooke, Marshall, Ohio, Upshur, and Wetzel counties in West Virginia; and 1 office in Belmont County in Ohio. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.

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