Chesapeake Financial Shares (OTCMKTS:CPKF – Get Free Report) and SmartFinancial (NASDAQ:SMBK – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Risk and Volatility
Chesapeake Financial Shares has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.
Insider and Institutional Ownership
3.7% of Chesapeake Financial Shares shares are held by institutional investors. Comparatively, 58.8% of SmartFinancial shares are held by institutional investors. 39.5% of Chesapeake Financial Shares shares are held by insiders. Comparatively, 7.7% of SmartFinancial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Chesapeake Financial Shares and SmartFinancial, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Chesapeake Financial Shares | 0 | 0 | 0 | 0 | N/A |
SmartFinancial | 0 | 3 | 1 | 1 | 2.60 |
SmartFinancial has a consensus price target of $27.00, indicating a potential downside of 9.82%. Given SmartFinancial’s higher probable upside, analysts clearly believe SmartFinancial is more favorable than Chesapeake Financial Shares.
Profitability
This table compares Chesapeake Financial Shares and SmartFinancial’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Chesapeake Financial Shares | 10.11% | 9.35% | 0.62% |
SmartFinancial | 9.93% | 6.55% | 0.62% |
Valuation and Earnings
This table compares Chesapeake Financial Shares and SmartFinancial”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Chesapeake Financial Shares | $82.72 million | 1.08 | $10.12 million | $1.95 | 9.74 |
SmartFinancial | $151.31 million | 3.38 | $28.59 million | $1.56 | 19.19 |
SmartFinancial has higher revenue and earnings than Chesapeake Financial Shares. Chesapeake Financial Shares 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 Chesapeake Financial Shares on 10 of the 15 factors compared between the two stocks.
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.
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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