Comparing First Financial Corporation Indiana (NASDAQ:THFF) & CB Financial Services (NASDAQ:CBFV)

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

Institutional and Insider Ownership

72.7% of First Financial Corporation Indiana shares are owned by institutional investors. Comparatively, 33.1% of CB Financial Services shares are owned by institutional investors. 5.0% of First Financial Corporation Indiana shares are owned by insiders. Comparatively, 10.2% of CB Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares First Financial Corporation Indiana and CB Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Corporation Indiana	23.32%	13.02%	1.43%
CB Financial Services	8.52%	10.08%	1.00%

Risk & Volatility

First Financial Corporation Indiana has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for First Financial Corporation Indiana and CB Financial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Corporation Indiana	0	4	1	1	2.50
CB Financial Services	0	2	2	0	2.50

First Financial Corporation Indiana presently has a consensus target price of $87.25, indicating a potential upside of 18.50%. CB Financial Services has a consensus target price of $42.50, indicating a potential upside of 13.58%. Given First Financial Corporation Indiana’s higher possible upside, equities analysts clearly believe First Financial Corporation Indiana is more favorable than CB Financial Services.

Dividends

First Financial Corporation Indiana pays an annual dividend of $2.24 per share and has a dividend yield of 3.0%. CB Financial Services pays an annual dividend of $1.12 per share and has a dividend yield of 3.0%. First Financial Corporation Indiana pays out 31.4% 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. First Financial Corporation Indiana has raised its dividend for 2 consecutive years. First Financial Corporation Indiana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares First Financial Corporation Indiana and CB Financial Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Corporation Indiana	$347.56 million	2.52	$79.21 million	$7.14	10.31
CB Financial Services	$46.12 million	4.12	$4.90 million	$1.35	27.72

First Financial Corporation Indiana has higher revenue and earnings than CB Financial Services. First Financial Corporation Indiana 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.

Summary

First Financial Corporation Indiana beats CB Financial Services on 13 of the 17 factors compared between the two stocks.

About First Financial Corporation Indiana

First Financial Corporation, through its subsidiaries, provides various financial services. The company offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. It also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, the company offers lease financing, trust account, depositor, and insurance services. The company was founded in 1834 and is headquartered in Terre Haute, Indiana.

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.