Financial Contrast: Freedom Financial (OTCMKTS:FDVA) vs. Chain Bridge Bancorp (NYSE:CBNA)

Freedom Financial (OTCMKTS:FDVA) and Chain Bridge Bancorp (NYSE:CBNA) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares Freedom Financial and Chain Bridge Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freedom Financial	-0.78%	-0.57%	-0.05%
Chain Bridge Bancorp	35.09%	13.07%	1.31%

Analyst Recommendations

This is a breakdown of current ratings for Freedom Financial and Chain Bridge Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freedom Financial	0	0	0	0	0.00
Chain Bridge Bancorp	1	3	0	1	2.20

Chain Bridge Bancorp has a consensus target price of $38.50, indicating a potential upside of 2.92%. Given Chain Bridge Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Chain Bridge Bancorp is more favorable than Freedom Financial.

Volatility and Risk

Freedom Financial has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Chain Bridge Bancorp has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Valuation & Earnings

This table compares Freedom Financial and Chain Bridge Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freedom Financial	$63.61 million	1.35	$380,000.00	($0.07)	-172.86
Chain Bridge Bancorp	$59.32 million	4.14	$20.24 million	$3.31	11.30

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

Summary

Chain Bridge Bancorp beats Freedom Financial on 11 of the 12 factors compared between the two stocks.

About Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.

About Chain Bridge Bancorp

Chain Bridge Bancorp, Inc. operates as a Delaware-chartered bank holding company for Chain Bridge Bank, National Association that provides commercial and personal banking, and trust services in the United States. Its deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts. The company’s loan portfolio comprises of residential and commercial real estate loans, commercial loans, and consumer loans. It also provides treasury management, payments, trusts and estate administration, wealth management, and asset custody services. The company was incorporated in 2006 and is headquartered in McLean, Virginia.