Critical Analysis: California BanCorp (NASDAQ:CALB) & CNB Financial (NASDAQ:CCNE)

California BanCorp (NASDAQ:CALB) and CNB Financial (NASDAQ:CCNE) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation & Earnings

This table compares California BanCorp and CNB Financial’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California BanCorp	$114.08 million	1.63	$21.63 million	$2.56	8.63
CNB Financial	$218.14 million	1.84	$58.02 million	$2.38	8.01

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

Profitability

This table compares California BanCorp and CNB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California BanCorp	18.96%	11.55%	1.08%
CNB Financial	15.96%	10.85%	0.95%

Analyst Ratings

This is a summary of current recommendations for California BanCorp and CNB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California BanCorp	0	0	3	0	3.00
CNB Financial	0	1	0	0	2.00

California BanCorp currently has a consensus target price of $24.25, suggesting a potential upside of 9.78%. CNB Financial has a consensus target price of $22.00, suggesting a potential upside of 15.36%. Given CNB Financial’s higher possible upside, analysts plainly believe CNB Financial is more favorable than California BanCorp.

Risk and Volatility

California BanCorp has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

59.5% of California BanCorp shares are owned by institutional investors. Comparatively, 52.3% of CNB Financial shares are owned by institutional investors. 10.8% of California BanCorp shares are owned by company insiders. Comparatively, 2.8% of CNB Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

California BanCorp beats CNB Financial on 10 of the 14 factors compared between the two stocks.

About California BanCorp

California BanCorp operates as the bank holding company for California Bank of Commerce that provides commercial banking services to businesses and professionals in California. It accepts various deposit products, including commercial checking, savings, and money market accounts, as well as certificates of deposit. The company also offers asset-based lending loans; commercial letters of credit; construction and development loans; real estate loans, such as commercial real estate loans and other loans; small business administration (SBA) loans, including SBA 7(a) and SBA 504 loans; consumer loans, such as secured and unsecured installment loans, and revolving lines of credit; and commercial and industrial loans, including term loans, working capital, accounts receivable and inventory financing, and other business loans to the dental and veterinary industries, contractors, and emerging companies. In addition, it provides foreign exchange, treasury and cash management, and online and mobile banking services. California BanCorp was founded in 2007 and is headquartered in Oakland, California.

About CNB Financial

CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. The company accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. It also provides private banking; and wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, the company invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.