Contrasting CNB Financial (NASDAQ:CCNE) and Byline Bancorp (NYSE:BY)

Byline Bancorp (NYSE:BY) and CNB Financial (NASDAQ:CCNE) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	19.03%	10.98%	1.30%
CNB Financial	14.56%	9.79%	0.89%

Dividends

Byline Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. CNB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. Byline Bancorp pays out 14.9% of its earnings in the form of a dividend. CNB Financial pays out 30.3% 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. Byline Bancorp has raised its dividend for 1 consecutive years and CNB Financial has raised its dividend for 1 consecutive years.

Earnings & Valuation

This table compares Byline Bancorp and CNB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byline Bancorp	$624.78 million	2.13	$120.76 million	$2.68	10.85
CNB Financial	$231.04 million	3.29	$54.58 million	$2.38	10.84

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

Analyst Ratings

This is a breakdown of current recommendations for Byline Bancorp and CNB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	2	2	0	2.50
CNB Financial	0	1	1	0	2.50

Byline Bancorp currently has a consensus target price of $33.25, indicating a potential upside of 14.38%. CNB Financial has a consensus target price of $27.75, indicating a potential upside of 7.52%. Given Byline Bancorp’s higher probable upside, research analysts plainly believe Byline Bancorp is more favorable than CNB Financial.

Volatility & Risk

Byline Bancorp has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Insider & Institutional Ownership

67.7% of Byline Bancorp shares are held by institutional investors. Comparatively, 52.3% of CNB Financial shares are held by institutional investors. 28.8% of Byline Bancorp shares are held by company insiders. Comparatively, 2.8% of CNB Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Byline Bancorp beats CNB Financial on 13 of the 15 factors compared between the two stocks.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

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.