Head to Head Comparison: CB Financial Services (NASDAQ:CBFV) versus Hawthorn Bancshares (NASDAQ:HWBK)

Hawthorn Bancshares (NASDAQ:HWBK) and CB Financial Services (NASDAQ:CBFV) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings for Hawthorn Bancshares and CB Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hawthorn Bancshares	0	1	0	0	2.00
CB Financial Services	0	2	1	0	2.33

CB Financial Services has a consensus price target of $36.00, suggesting a potential upside of 6.04%. Given CB Financial Services’ stronger consensus rating and higher possible upside, analysts clearly believe CB Financial Services is more favorable than Hawthorn Bancshares.

Dividends

Hawthorn Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. CB Financial Services pays an annual dividend of $1.04 per share and has a dividend yield of 3.1%. Hawthorn Bancshares pays out 25.1% of its earnings in the form of a dividend. CB Financial Services pays out 216.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hawthorn Bancshares has increased its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Hawthorn Bancshares and CB Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hawthorn Bancshares	$109.67 million	2.12	$18.26 million	$3.19	10.58
CB Financial Services	$81.62 million	2.08	$12.59 million	$0.48	70.73

Hawthorn Bancshares has higher revenue and earnings than CB Financial Services. Hawthorn Bancshares 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.

Profitability

This table compares Hawthorn Bancshares and CB Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hawthorn Bancshares	20.09%	14.22%	1.18%
CB Financial Services	3.37%	8.42%	0.83%

Volatility and Risk

Hawthorn Bancshares has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Institutional and Insider Ownership

30.7% of Hawthorn Bancshares shares are owned by institutional investors. Comparatively, 33.1% of CB Financial Services shares are owned by institutional investors. 22.7% of Hawthorn Bancshares shares are owned by insiders. Comparatively, 9.4% 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 company is poised for long-term growth.

Summary

Hawthorn Bancshares beats CB Financial Services on 11 of the 17 factors compared between the two stocks.

About Hawthorn Bancshares

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.

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.