CNB Financial (NASDAQ:CCNE) versus MVB Financial (NASDAQ:MVBF) Financial Review

CNB Financial (NASDAQ:CCNE) and MVB Financial (NASDAQ:MVBF) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations and price targets for CNB Financial and MVB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNB Financial	0	1	1	0	2.50
MVB Financial	0	1	3	0	2.75

CNB Financial currently has a consensus price target of $25.75, indicating a potential upside of 13.75%. MVB Financial has a consensus price target of $23.75, indicating a potential upside of 32.39%. Given MVB Financial’s stronger consensus rating and higher possible upside, analysts plainly believe MVB Financial is more favorable than CNB Financial.

Dividends

CNB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 3.2%. MVB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. CNB Financial pays out 30.9% of its earnings in the form of a dividend. MVB Financial pays out 46.6% 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. CNB Financial has increased its dividend for 1 consecutive years.

Profitability

This table compares CNB Financial and MVB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNB Financial	14.97%	10.24%	0.92%
MVB Financial	8.78%	6.76%	0.59%

Valuation & Earnings

This table compares CNB Financial and MVB Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNB Financial	$224.79 million	2.11	$54.58 million	$2.33	9.72
MVB Financial	$144.02 million	1.61	$20.09 million	$1.46	12.29

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

Institutional and Insider Ownership

52.3% of CNB Financial shares are held by institutional investors. Comparatively, 52.7% of MVB Financial shares are held by institutional investors. 2.8% of CNB Financial shares are held by insiders. Comparatively, 11.7% of MVB Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

CNB Financial has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, MVB Financial has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Summary

CNB Financial beats MVB Financial on 9 of the 17 factors compared between the two stocks.

About CNB Financial

CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. The company accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. It also provides private banking; and wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, the company invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.

About MVB Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.