Head to Head Comparison: Northeast Community Bancorp (NASDAQ:NECB) & CB Financial Services (NASDAQ:CBFV)

Northeast Community Bancorp (NASDAQ:NECB) and CB Financial Services (NASDAQ:CBFV) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northeast Community Bancorp	27.67%	12.00%	2.05%
CB Financial Services	8.52%	10.08%	1.00%

Earnings and Valuation

This table compares Northeast Community Bancorp and CB Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Community Bancorp	$158.21 million	2.41	$44.41 million	$3.12	8.86
CB Financial Services	$80.52 million	2.37	$4.90 million	$1.35	27.82

Northeast Community Bancorp has higher revenue and earnings than CB Financial Services. Northeast 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.

Risk and Volatility

Northeast Community Bancorp has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Northeast Community Bancorp and CB Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Community Bancorp	0	1	1	2	3.25
CB Financial Services	0	2	2	0	2.50

Northeast Community Bancorp currently has a consensus price target of $29.50, indicating a potential upside of 6.71%. CB Financial Services has a consensus price target of $42.50, indicating a potential upside of 13.15%. Given CB Financial Services’ higher possible upside, analysts clearly believe CB Financial Services is more favorable than Northeast Community Bancorp.

Insider and Institutional Ownership

53.2% of Northeast Community Bancorp shares are owned by institutional investors. Comparatively, 33.1% of CB Financial Services shares are owned by institutional investors. 7.1% of Northeast Community Bancorp shares are owned by company insiders. Comparatively, 10.2% of CB Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Northeast 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 $1.12 per share and has a dividend yield of 3.0%. Northeast Community Bancorp pays out 32.1% of its earnings in the form of a dividend. CB Financial Services pays out 83.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northeast Community Bancorp has increased its dividend for 2 consecutive years. Northeast Community Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Northeast Community Bancorp beats CB Financial Services on 14 of the 18 factors compared between the two stocks.

About Northeast Community Bancorp

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers financial planning and investment advisory services; and life insurance products and fixed-rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York, and New City counties in New York and Danvers, Massachusetts. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, New York.

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.