Contrasting 1st Colonial Bancorp (OTCMKTS:FCOB) and CB Financial Services (NASDAQ:CBFV)

CB Financial Services (NASDAQ:CBFV) and 1st Colonial Bancorp (OTCMKTS:FCOB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

33.1% of CB Financial Services shares are owned by institutional investors. Comparatively, 13.4% of 1st Colonial Bancorp shares are owned by institutional investors. 9.7% of CB Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for CB Financial Services and 1st Colonial Bancorp, as provided by MarketBeat.

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

CB Financial Services currently has a consensus target price of $35.50, indicating a potential downside of 4.72%. Given CB Financial Services’ stronger consensus rating and higher probable upside, research analysts plainly believe CB Financial Services is more favorable than 1st Colonial Bancorp.

Risk and Volatility

CB Financial Services has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, 1st Colonial Bancorp has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500.

Profitability

This table compares CB Financial Services and 1st Colonial Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CB Financial Services	6.09%	9.61%	0.95%
1st Colonial Bancorp	14.71%	10.87%	1.04%

Earnings & Valuation

This table compares CB Financial Services and 1st Colonial Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CB Financial Services	$80.52 million	2.32	$4.90 million	$0.91	40.95
1st Colonial Bancorp	$49.61 million	2.14	$7.30 million	$1.48	14.64

1st Colonial Bancorp has lower revenue, but higher earnings than CB Financial Services. 1st Colonial 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.

Summary

CB Financial Services beats 1st Colonial Bancorp on 9 of the 14 factors compared between the two stocks.

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.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.