CNB Financial (NASDAQ:CCNE – Get Free Report) and Freedom Financial (OTCMKTS:FDVA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Risk and Volatility
CNB Financial has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Freedom Financial has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for CNB Financial and Freedom Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CNB Financial | 0 | 1 | 1 | 0 | 2.50 |
| Freedom Financial | 0 | 0 | 0 | 0 | 0.00 |
Institutional and Insider Ownership
52.4% of CNB Financial shares are held by institutional investors. 2.8% of CNB Financial shares are held by insiders. Comparatively, 13.3% of Freedom Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares CNB Financial and Freedom Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CNB Financial | 14.56% | 9.79% | 0.89% |
| Freedom Financial | 6.54% | 5.21% | 0.40% |
Earnings & Valuation
This table compares CNB Financial and Freedom Financial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CNB Financial | $364.58 million | 2.03 | $54.58 million | $2.38 | 10.55 |
| Freedom Financial | $66.41 million | 1.25 | $4.71 million | $0.60 | 19.42 |
CNB Financial has higher revenue and earnings than Freedom Financial. CNB Financial is trading at a lower price-to-earnings ratio than Freedom Financial, indicating that it is currently the more affordable of the two stocks.
Summary
CNB Financial beats Freedom Financial on 12 of the 14 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 Freedom Financial
Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.
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