Head-To-Head Analysis: Chemung Financial (NASDAQ:CHMG) and Chesapeake Financial Shares (OTCMKTS:CPKF)

Chemung Financial (NASDAQ:CHMG) and Chesapeake Financial Shares (OTCMKTS:CPKF) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Earnings and Valuation

This table compares Chemung Financial and Chesapeake Financial Shares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemung Financial	$140.78 million	1.87	$15.10 million	$3.14	17.50
Chesapeake Financial Shares	$102.27 million	1.48	$11.43 million	$1.40	23.00

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

Profitability

This table compares Chemung Financial and Chesapeake Financial Shares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chemung Financial	10.73%	11.80%	1.00%
Chesapeake Financial Shares	9.78%	14.64%	1.07%

Dividends

Chemung Financial pays an annual dividend of $1.36 per share and has a dividend yield of 2.5%. Chesapeake Financial Shares pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Chemung Financial pays out 43.3% of its earnings in the form of a dividend. Chesapeake Financial Shares pays out 48.6% 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. Chemung Financial has raised its dividend for 1 consecutive years. Chemung Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

47.5% of Chemung Financial shares are held by institutional investors. Comparatively, 3.7% of Chesapeake Financial Shares shares are held by institutional investors. 12.4% of Chemung Financial shares are held by insiders. Comparatively, 39.5% of Chesapeake Financial Shares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Chemung Financial has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Chemung Financial and Chesapeake Financial Shares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemung Financial	0	4	0	0	2.00
Chesapeake Financial Shares	0	0	0	0	0.00

Chemung Financial presently has a consensus price target of $57.00, indicating a potential upside of 3.75%. Given Chemung Financial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Chemung Financial is more favorable than Chesapeake Financial Shares.

Summary

Chemung Financial beats Chesapeake Financial Shares on 13 of the 16 factors compared between the two stocks.

About Chemung Financial

Chemung Financial Corporation operates as a bank holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial and residential mortgage loans; and consumer loans, including home equity lines of credit and home equity term loans. In addition, the company provides interest rate swaps, letters of credit, employee benefit plans, insurance products, mutual fund, brokerage, and tax preparation services. Further, it offers guardian, custodian, trustee, investment, pension, estate planning, and employee benefit administrative services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.