Community Bancorp (NASDAQ:CMTV – Get Free Report) and SmartFinancial (NASDAQ:SMBK – Get Free Report) are both small-cap financial services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Dividends
Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. SmartFinancial pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Community Bancorp pays out 31.5% of its earnings in the form of a dividend. SmartFinancial pays out 11.5% 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. SmartFinancial has increased its dividend for 3 consecutive years.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Community Bancorp and SmartFinancial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Community Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| SmartFinancial | 0 | 3 | 1 | 1 | 2.60 |
Insider & Institutional Ownership
58.8% of SmartFinancial shares are owned by institutional investors. 6.6% of Community Bancorp shares are owned by company insiders. Comparatively, 6.9% of SmartFinancial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Community Bancorp has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Profitability
This table compares Community Bancorp and SmartFinancial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Community Bancorp | 25.28% | 16.25% | 1.45% |
| SmartFinancial | 12.67% | 7.33% | 0.71% |
Earnings and Valuation
This table compares Community Bancorp and SmartFinancial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Community Bancorp | $68.79 million | 3.20 | $16.97 million | $3.17 | 12.46 |
| SmartFinancial | $203.48 million | 3.41 | $36.14 million | $3.12 | 13.00 |
SmartFinancial has higher revenue and earnings than Community Bancorp. Community Bancorp is trading at a lower price-to-earnings ratio than SmartFinancial, indicating that it is currently the more affordable of the two stocks.
Summary
SmartFinancial beats Community Bancorp on 11 of the 17 factors compared between the two stocks.
About Community Bancorp
Community Bancorp. operates as the bank holding company for Community National Bank that provides a range of retail banking services to residents, businesses, nonprofit organizations, and municipalities. It provides various consumer banking products and services, including checking accounts, savings programs, ATMs, debit/credit cards, and night deposit facilities, as well as online, mobile, and telephone banking. The company’s business banking products and services comprise credit products for various business purposes, including financing for commercial business properties, equipment, inventories, and accounts receivable, as well as letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, and remote deposit capture. It offers commercial real estate lending products for commercial developers and investors, residential builders and developers, and community development entities, which include credit products to facilitate the purchase of land and/or build structures for business, for investors to develop residential or commercial properties, and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. The company’s residential real estate lending products include fixed-rate and adjustable rate residential mortgage and home equity loans; retail credit products include personal, automobile, and boat/recreational vehicle loans; and municipal and institutional banking products and services for state and local governments, schools, charities, membership, and not-for-profit associations comprise deposit accounts, tax-exempt loans, lines of credit, and term loans, as well as a collateralized secured deposit products. It operates through a main office in Derby; and eleven branch offices in northeastern and central Vermont. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.
About SmartFinancial
SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.
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