Financial Review: SB Financial Group (NASDAQ:SBFG) and BNP Paribas (OTCMKTS:BNPQY)

BNP Paribas (OTCMKTS:BNPQY) and SB Financial Group (NASDAQ:SBFG) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Institutional & Insider Ownership

1.2% of BNP Paribas shares are owned by institutional investors. Comparatively, 66.7% of SB Financial Group shares are owned by institutional investors. 6.0% of SB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for BNP Paribas and SB Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNP Paribas	0	4	3	1	2.62
SB Financial Group	0	1	1	0	2.50

Valuation and Earnings

This table compares BNP Paribas and SB Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNP Paribas	$57.94 billion	1.91	$13.83 billion	$6.75	7.46
SB Financial Group	$91.03 million	2.01	$13.97 million	$2.68	10.93

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

Volatility and Risk

BNP Paribas has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, SB Financial Group has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BNP Paribas	25.22%	10.32%	0.48%
SB Financial Group	17.67%	11.82%	1.07%

Dividends

BNP Paribas pays an annual dividend of $2.71 per share and has a dividend yield of 5.4%. SB Financial Group pays an annual dividend of $0.64 per share and has a dividend yield of 2.2%. BNP Paribas pays out 40.1% of its earnings in the form of a dividend. SB Financial Group pays out 23.9% 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. SB Financial Group has raised its dividend for 12 consecutive years.

Summary

BNP Paribas beats SB Financial Group on 9 of the 17 factors compared between the two stocks.

About BNP Paribas

BNP Paribas SA provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through three divisions: Corporate & Institutional Banking; Commercial, Personal Banking & Services; and Investment & Protection Services. The Corporate & Institutional Banking division offers capital market, securities, investment banking, financing, risk management, cash management, and financial advisory services for corporate clients and institutional investors. The Commercial, Personal Banking & Services division provides financing and equipment leasing services, mobility, and digital banking services, as well as current accounts, savings products, bancassurance, insurance products and services, and consumer loans. The Investment & Protection Services division provides protection, savings, investment, and real estate services to support individuals, professionals, corporate clients, and institutions. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France.

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.