Comparing CNB Financial (NASDAQ:CCNE) & Pathward Financial (NASDAQ:CASH)

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

Risk & Volatility

CNB Financial has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Pathward Financial has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Dividends

CNB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 3.0%. Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. CNB Financial pays out 30.3% of its earnings in the form of a dividend. Pathward Financial pays out 2.6% 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. CNB Financial has increased its dividend for 1 consecutive years. CNB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CNB Financial	14.56%	9.79%	0.89%
Pathward Financial	22.23%	22.53%	2.46%

Earnings and Valuation

This table compares CNB Financial and Pathward Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNB Financial	$231.04 million	3.10	$54.58 million	$2.38	10.22
Pathward Financial	$775.94 million	2.18	$183.22 million	$7.56	9.85

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

Institutional and Insider Ownership

52.3% of CNB Financial shares are held by institutional investors. Comparatively, 92.7% of Pathward Financial shares are held by institutional investors. 2.8% of CNB Financial shares are held by insiders. Comparatively, 1.2% of Pathward Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for CNB Financial and Pathward Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNB Financial	0	2	1	0	2.33
Pathward Financial	0	1	2	0	2.67

CNB Financial presently has a consensus target price of $27.75, suggesting a potential upside of 14.06%. Pathward Financial has a consensus target price of $91.00, suggesting a potential upside of 22.26%. Given Pathward Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Pathward Financial is more favorable than CNB Financial.

Summary

Pathward Financial beats CNB Financial on 11 of the 17 factors compared between the two stocks.

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.

About Pathward Financial

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial, and Corporate Services/Other. It offers demand deposit accounts, savings accounts, and money market savings accounts. The company also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, it issues prepaid cards; and offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.