Contrasting Bank7 (NASDAQ:BSVN) and Chesapeake Financial Shares (OTCMKTS:CPKF)

Bank7 (NASDAQ:BSVN) and Chesapeake Financial Shares (OTCMKTS:CPKF) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Dividends

Bank7 pays an annual dividend of $1.08 per share and has a dividend yield of 2.6%. Chesapeake Financial Shares pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Bank7 pays out 23.2% of its earnings in the form of a dividend. Chesapeake Financial Shares pays out 16.1% 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. Bank7 has raised its dividend for 5 consecutive years. Bank7 is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Bank7 and Chesapeake Financial Shares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank7	$137.26 million	2.92	$43.07 million	$4.66	9.03
Chesapeake Financial Shares	$102.27 million	1.60	$10.00 million	$4.22	8.22

Bank7 has higher revenue and earnings than Chesapeake Financial Shares. Chesapeake Financial Shares is trading at a lower price-to-earnings ratio than Bank7, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bank7 and Chesapeake Financial Shares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank7	31.77%	18.18%	2.34%
Chesapeake Financial Shares	17.24%	15.88%	1.20%

Volatility & Risk

Bank7 has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Institutional and Insider Ownership

23.5% of Bank7 shares are owned by institutional investors. Comparatively, 3.7% of Chesapeake Financial Shares shares are owned by institutional investors. 25.7% of Bank7 shares are owned by insiders. Comparatively, 39.5% of Chesapeake Financial Shares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bank7 and Chesapeake Financial Shares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank7	0	0	3	1	3.25
Chesapeake Financial Shares	0	0	0	0	0.00

Bank7 presently has a consensus target price of $54.50, indicating a potential upside of 29.45%. Given Bank7’s stronger consensus rating and higher possible upside, analysts clearly believe Bank7 is more favorable than Chesapeake Financial Shares.

Summary

Bank7 beats Chesapeake Financial Shares on 16 of the 18 factors compared between the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.