Neon Bloom (OTCMKTS:NBCO) & Community Financial System (NYSE:CBU) Critical Analysis

Neon Bloom (OTCMKTS:NBCO) and Community Financial System (NYSE:CBU) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Profitability

This table compares Neon Bloom and Community Financial System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neon Bloom	N/A	N/A	N/A
Community Financial System	20.72%	11.09%	1.23%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Neon Bloom and Community Financial System, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neon Bloom	0	0	0	0	0.00
Community Financial System	0	3	0	0	2.00

Community Financial System has a consensus price target of $64.00, suggesting a potential upside of 10.45%. Given Community Financial System’s stronger consensus rating and higher probable upside, analysts plainly believe Community Financial System is more favorable than Neon Bloom.

Institutional and Insider Ownership

73.8% of Community Financial System shares are owned by institutional investors. 1.0% of Community Financial System shares are owned by 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.

Earnings and Valuation

This table compares Neon Bloom and Community Financial System”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neon Bloom	$32.13 million	0.08	N/A	N/A	N/A
Community Financial System	$940.71 million	3.24	$182.48 million	$3.88	14.93

Community Financial System has higher revenue and earnings than Neon Bloom.

Volatility and Risk

Neon Bloom has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Community Financial System has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Summary

Community Financial System beats Neon Bloom on 10 of the 10 factors compared between the two stocks.

About Neon Bloom

Neon Bloom, Inc. is a principal investment firm specializing in acquisitions. The firm primarily invests in innovative agriculture and ancillary technology products and services across the globe. Neon Bloom, Inc was founded in 2015 and is based in New York, New York.

About Community Financial System

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.