Reviewing Citizens Financial Group (NYSE:CFG) & SB Financial Group (NYSE:SBFG)

Citizens Financial Group (NYSE:CFG) and SB Financial Group (NASDAQ:SBFG) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Dividends

Citizens Financial Group pays an annual dividend of $1.56 per share and has a dividend yield of 6.6%. SB Financial Group pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Citizens Financial Group pays out 40.6% of its earnings in the form of a dividend. SB Financial Group pays out 24.7% 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. Citizens Financial Group has raised its dividend for 5 consecutive years and SB Financial Group has raised its dividend for 4 consecutive years. Citizens Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Citizens Financial Group and SB Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens Financial Group $8.07 billion 1.24 $1.79 billion $3.84 6.13
SB Financial Group $62.42 million 2.00 $11.97 million $1.62 10.03

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Citizens Financial Group and SB Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens Financial Group 0 2 9 0 2.82
SB Financial Group 0 0 0 0 N/A

Citizens Financial Group currently has a consensus price target of $35.85, indicating a potential upside of 52.36%. Given Citizens Financial Group’s higher probable upside, analysts plainly believe Citizens Financial Group is more favorable than SB Financial Group.

Institutional & Insider Ownership

93.7% of Citizens Financial Group shares are owned by institutional investors. Comparatively, 46.7% of SB Financial Group shares are owned by institutional investors. 0.4% of Citizens Financial Group shares are owned by company insiders. Comparatively, 3.8% of SB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Citizens Financial Group and SB Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens Financial Group 17.23% 6.89% 0.85%
SB Financial Group 16.90% 9.73% 1.19%

Risk and Volatility

Citizens Financial Group has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, SB Financial Group has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Summary

Citizens Financial Group beats SB Financial Group on 10 of the 16 factors compared between the two stocks.

About Citizens Financial Group

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association and Citizens Bank of Pennsylvania that provides retail and commercial banking products and services in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers traditional banking products and services, including checking and savings accounts, home and education loans, credit cards, business loans, mortgage and home equity lending, and unsecured product finance and personal loans, as well as wealth management and investment services to retail customers and small businesses. This segment also provides indirect auto finance for new and used vehicles through auto dealerships. The Commercial Banking segment offers various financial products and solutions, such as loans and leasing, trade finance, deposit and treasury management, cash management, and foreign exchange and interest rate risk management solutions; and corporate finance, merger and acquisition, and debt and equity capital markets capabilities. It serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. Citizens Financial Group, Inc. operates approximately 1,100 branches and 2,900 ATMs in 11 states in the New England, Mid-Atlantic, and Midwest regions, as well as through online, telephone, and mobile banking services; and maintains approximately 140 retail and commercial non-branch offices in its banking footprint and in other states, and the District of Columbia. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

About SB Financial Group

SB Financial Group, Inc., through its subsidiaries, provides range of banking and wealth management services to individual and corporate customers primarily in northwest Ohio and northeast Indiana. It accepts deposits, such as checking accounts, savings accounts, money market accounts, demand deposits, and time certificates of deposit. The company's loan products include commercial and agricultural, commercial real estate, residential mortgage, and consumer loans. It also offers personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, Internet banking, automatic teller machine, private client group, and other personalized banking services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, the company sells various insurance products to retail and commercial customers. It operates 19 banking centers located within the Ohio counties of Allen, Defiance, Franklin, Fulton, Hancock, Lucas, Paulding, Wood, and Williams; 1 banking center located in Allen County, Indiana; and 7 loan production offices located in Cuyahoga, Franklin, Lucas, and Seneca Counties, Ohio, as well as Kosciusko and Steuben County, Indiana and Monroe County, Michigan. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was founded in 1983 and is based in Defiance, Ohio.

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