Comparing CB Financial Services (NASDAQ:CBFV) and Community Bancorp. (OTCMKTS:CMTV)

Community Bancorp. (OTCMKTS:CMTV) and CB Financial Services (NASDAQ:CBFV) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

33.1% of CB Financial Services shares are held by institutional investors. 9.3% of Community Bancorp. shares are held by company insiders. Comparatively, 9.4% of CB Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Community Bancorp. pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. CB Financial Services pays an annual dividend of $1.04 per share and has a dividend yield of 3.0%. Community Bancorp. pays out 34.4% of its earnings in the form of a dividend. CB Financial Services pays out 216.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Bancorp. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Community Bancorp. has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Valuation & Earnings

This table compares Community Bancorp. and CB Financial Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Bancorp.	$62.18 million	2.50	$12.76 million	$2.91	9.62
CB Financial Services	$81.62 million	2.12	$12.59 million	$0.48	71.90

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

Profitability

This table compares Community Bancorp. and CB Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Bancorp.	24.43%	15.91%	1.36%
CB Financial Services	3.37%	8.42%	0.83%

Analyst Recommendations

This is a summary of current ratings for Community Bancorp. and CB Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Bancorp.	0	0	0	0	0.00
CB Financial Services	0	3	1	0	2.25

CB Financial Services has a consensus target price of $36.00, suggesting a potential upside of 4.32%. Given CB Financial Services’ stronger consensus rating and higher probable upside, analysts plainly believe CB Financial Services is more favorable than Community Bancorp..

About Community Bancorp.

Community Bancorp. operates as the bank holding company for Community National Bank that provides financial services to individuals, businesses, nonprofit organizations, and municipalities in northern and central Vermont. It offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as standby letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, card processing, and remote deposit capture. The company also provides commercial real estate lending products, including financing for commercial developers and investors, residential builders and developers, and community development entities, including credit products to facilitate the purchase of land and/or build structures for business; to develop residential or commercial properties; and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. In addition, it offers residential real estate lending products, including fixed-rate and adjustable rate residential mortgage and home equity loans; and retail credit services, which includes personal, automobile, and boat/recreational vehicle loans. The company also provides municipal and institutional banking services, such as deposit account services, term and tax-exempt loans, and lines of credit to state and local governments, schools, charities, membership, and not-for-profit associations. Further, it offers consumer banking services, including checking accounts, savings programs, ATMs, debit and credit cards, night deposit facilities, and online, mobile and telephone banking services. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.

About CB Financial Services

CB Financial Services, Inc. operates as the bank holding company for Community Bank that provides various banking products and services for individuals and businesses in southwestern Pennsylvania, West Virginia, and Ohio. The company's primary deposit products include demand deposits, NOW accounts, money market accounts, and savings accounts, as well as time deposit products. Its loan products comprise residential real estate loans, such as one- to four-family mortgage loans, home equity installment loans, and home equity lines of credit; commercial real estate loans that are secured primarily by improved properties, such as retail facilities, office buildings, and other non-residential buildings; construction loans to individuals to finance the construction of residential dwellings, as well as for the construction of commercial properties, including hotels, apartment buildings, housing developments, and owner-occupied properties used for businesses; commercial and industrial loans, and lines of credit; consumer loans consisting of indirect auto loans, secured and unsecured loans, and lines of credit; and other loans. In addition, the company conducts insurance agency activities by offering property and casualty, commercial liability, surety, and other insurance products. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.