Head-To-Head Contrast: SB Financial Group (NASDAQ:SBFG) & WCF Bancorp (OTCMKTS:WCFB)

SB Financial Group (NASDAQ:SBFG) and WCF Bancorp (OTCMKTS:WCFB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares SB Financial Group and WCF Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SB Financial Group	13.78%	9.57%	0.87%
WCF Bancorp	N/A	N/A	N/A

Volatility and Risk

SB Financial Group has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, WCF Bancorp has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Valuation and Earnings

This table compares SB Financial Group and WCF Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SB Financial Group	$62.33 million	2.00	$11.47 million	$2.12	9.27
WCF Bancorp	$11.85 million	1.14	-$40,000.00	N/A	N/A

SB Financial Group has higher revenue and earnings than WCF Bancorp.

Institutional and Insider Ownership

66.7% of SB Financial Group shares are owned by institutional investors. 5.7% of SB Financial Group shares are owned by company insiders. Comparatively, 0.8% of WCF Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

SB Financial Group pays an annual dividend of $0.62 per share and has a dividend yield of 3.2%. WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. SB Financial Group pays out 29.2% of its earnings in the form of a dividend. SB Financial Group has increased its dividend for 12 consecutive years. SB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for SB Financial Group and WCF Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SB Financial Group	0	1	1	0	2.50
WCF Bancorp	0	0	0	0	0.00

Summary

SB Financial Group beats WCF Bancorp on 13 of the 14 factors compared between the two stocks.

About SB Financial Group

SB Financial Group, Inc. operates as the financial holding company for the State Bank and Trust Company that provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was founded in 1902 and is based in Defiance, Ohio.

About WCF Bancorp

WCF Bancorp, Inc. operates as the bank holding company for WCF Financial Bank that provides commercial banking products and services to individuals and businesses. The company offers checking and saving accounts; certificates of deposit; personal, mortgage, business, agricultural, and commercial real estate loans; debit and credit cards; and other products. It operates through full-service offices in Webster City, Independence, and Tama, Iowa. The company was founded in 1934 and is based in Webster City, Iowa.