Contrasting CB Financial Services (NASDAQ:CBFV) & Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB)

Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) and CB Financial Services (NASDAQ:CBFV) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Home Bancshares, Inc. (Conway, AR) and CB Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Bancshares, Inc. (Conway, AR)	0	2	3	0	2.60
CB Financial Services	0	2	0	0	2.00

Home Bancshares, Inc. (Conway, AR) presently has a consensus price target of $32.00, indicating a potential upside of 19.99%. CB Financial Services has a consensus price target of $26.00, indicating a potential downside of 6.41%. Given Home Bancshares, Inc. (Conway, AR)’s stronger consensus rating and higher possible upside, analysts clearly believe Home Bancshares, Inc. (Conway, AR) is more favorable than CB Financial Services.

Dividends

Home Bancshares, Inc. (Conway, AR) pays an annual dividend of $0.78 per share and has a dividend yield of 2.9%. CB Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Home Bancshares, Inc. (Conway, AR) pays out 38.6% of its earnings in the form of a dividend. CB Financial Services pays out 41.8% 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. Home Bancshares, Inc. (Conway, AR) has increased its dividend for 14 consecutive years.

Risk & Volatility

Home Bancshares, Inc. (Conway, AR) has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Insider & Institutional Ownership

67.3% of Home Bancshares, Inc. (Conway, AR) shares are held by institutional investors. Comparatively, 33.1% of CB Financial Services shares are held by institutional investors. 6.3% of Home Bancshares, Inc. (Conway, AR) shares are held by company insiders. Comparatively, 9.4% of CB Financial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Home Bancshares, Inc. (Conway, AR) and CB Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Bancshares, Inc. (Conway, AR)	$1.00 billion	5.29	$402.24 million	$2.02	13.20
CB Financial Services	$49.14 million	2.90	$12.59 million	$2.39	11.62

Home Bancshares, Inc. (Conway, AR) has higher revenue and earnings than CB Financial Services. CB Financial Services is trading at a lower price-to-earnings ratio than Home Bancshares, Inc. (Conway, AR), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Home Bancshares, Inc. (Conway, AR) and CB Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Bancshares, Inc. (Conway, AR)	27.39%	10.31%	1.77%
CB Financial Services	15.43%	7.45%	0.70%

Summary

Home Bancshares, Inc. (Conway, AR) beats CB Financial Services on 14 of the 17 factors compared between the two stocks.

About Home Bancshares, Inc. (Conway, AR)

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. It provides internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. It operates through branches in Arkansas, Florida, Alabama, Texas, and New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.

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.