Analyzing Chain Bridge Bancorp (NYSE:CBNA) & Freedom Financial (OTCMKTS:FDVA)

Chain Bridge Bancorp (NYSE:CBNA) and Freedom Financial (OTCMKTS:FDVA) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Risk and Volatility

Chain Bridge Bancorp has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Freedom Financial has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Valuation and Earnings

This table compares Chain Bridge Bancorp and Freedom Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chain Bridge Bancorp	$59.32 million	4.33	$20.24 million	$3.31	11.84
Freedom Financial	$63.61 million	1.37	$380,000.00	($0.07)	-174.29

Chain Bridge Bancorp has higher earnings, but lower revenue than Freedom Financial. Freedom Financial is trading at a lower price-to-earnings ratio than Chain Bridge Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Chain Bridge Bancorp and Freedom Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chain Bridge Bancorp	1	3	0	1	2.20
Freedom Financial	0	0	0	0	0.00

Chain Bridge Bancorp presently has a consensus target price of $38.50, indicating a potential downside of 1.77%. Given Chain Bridge Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Chain Bridge Bancorp is more favorable than Freedom Financial.

Profitability

This table compares Chain Bridge Bancorp and Freedom Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chain Bridge Bancorp	35.09%	13.07%	1.31%
Freedom Financial	-0.78%	-0.57%	-0.05%

Summary

Chain Bridge Bancorp beats Freedom Financial on 11 of the 12 factors compared between the two stocks.

About Chain Bridge Bancorp

Chain Bridge Bancorp, Inc. operates as a Delaware-chartered bank holding company for Chain Bridge Bank, National Association that provides commercial and personal banking, and trust services in the United States. Its deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts. The company’s loan portfolio comprises of residential and commercial real estate loans, commercial loans, and consumer loans. It also provides treasury management, payments, trusts and estate administration, wealth management, and asset custody services. The company was incorporated in 2006 and is headquartered in McLean, Virginia.

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.