Head-To-Head Comparison: Independent Bank Group (NASDAQ:IBTX) vs. CB Financial Services (NASDAQ:CBFV)

CB Financial Services (NASDAQ:CBFVGet Rating) and Independent Bank Group (NASDAQ:IBTXGet Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
CB Financial Services 19.34% 8.20% 0.74%
Independent Bank Group 34.57% 8.88% 1.22%

Dividends

CB Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.2%. Independent Bank Group pays an annual dividend of $1.52 per share and has a dividend yield of 2.2%. CB Financial Services pays out 44.4% of its earnings in the form of a dividend. Independent Bank Group pays out 29.2% 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. Independent Bank Group has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CB Financial Services and Independent Bank Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CB Financial Services 0 0 0 0 N/A
Independent Bank Group 0 1 1 0 2.50

Independent Bank Group has a consensus price target of $85.00, suggesting a potential upside of 21.15%. Given Independent Bank Group’s higher probable upside, analysts clearly believe Independent Bank Group is more favorable than CB Financial Services.

Insider and Institutional Ownership

26.6% of CB Financial Services shares are owned by institutional investors. Comparatively, 72.0% of Independent Bank Group shares are owned by institutional investors. 10.0% of CB Financial Services shares are owned by company insiders. Comparatively, 3.4% of Independent Bank Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

CB Financial Services has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Independent Bank Group has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Earnings & Valuation

This table compares CB Financial Services and Independent Bank Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CB Financial Services $59.84 million 1.96 $11.57 million $2.16 10.51
Independent Bank Group $650.08 million 4.63 $224.75 million $5.21 13.47

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

Summary

Independent Bank Group beats CB Financial Services on 14 of the 16 factors compared between the two stocks.

About CB Financial Services (Get Rating)

CB Financial Services, Inc. is a bank holding company, which engages in the provision of financial solutions. The company operates through the Community Banking and Insurance Brokerage Services segments. It offers residential and commercial real estate loans, commercial and industrial loans, and consumer loans as well as a variety of deposit products for individuals and businesses. Community Bank was founded in 1901 while CB Financial Services was established in 2006 and is headquartered in Carmichaels, PA.

About Independent Bank Group (Get Rating)

Independent Bank Group, Inc. operates as the bank holding company for Independent Bank that provides various commercial banking products and services to businesses, professionals, and individuals in the United States. It accepts various deposit products, including checking and savings accounts, demand deposits, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single-family interim construction loans; commercial loans comprising SBA guaranteed loans, business term loans, equipment lease financing, lines of credit, and energy related loans; agricultural loans for farmers and ranchers; consumer installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages, as well as mortgage warehouse purchase loans. In addition, it offers debit cards, online and mobile banking, eStatement, bank-by-mail, and direct deposit services; and business accounts and management services, including analyzed business checking, business savings, and treasury management services. As of December 31, 2021, the company operated 93 full-service branches. Independent Bank Group, Inc. was founded in 2002 and is headquartered in McKinney, Texas.

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