Reviewing CNB Financial (NASDAQ:CCNE) and Community Trust Bancorp (NASDAQ:CTBI)

Community Trust Bancorp (NASDAQ:CTBI) and CNB Financial (NASDAQ:CCNE) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Volatility & Risk

Community Trust Bancorp has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, CNB Financial has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

60.2% of Community Trust Bancorp shares are held by institutional investors. Comparatively, 52.4% of CNB Financial shares are held by institutional investors. 4.3% of Community Trust Bancorp shares are held by company insiders. Comparatively, 2.8% of CNB Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Community Trust Bancorp and CNB Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Trust Bancorp	$326.31 million	2.35	$78.00 million	$4.31	9.88
CNB Financial	$327.03 million	1.27	$58.02 million	$2.38	8.30

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

Dividends

Community Trust Bancorp pays an annual dividend of $1.84 per share and has a dividend yield of 4.3%. CNB Financial pays an annual dividend of $0.70 per share and has a dividend yield of 3.5%. Community Trust Bancorp pays out 42.7% of its earnings in the form of a dividend. CNB Financial pays out 29.4% 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. Community Trust Bancorp has raised its dividend for 43 consecutive years. Community Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Community Trust Bancorp and CNB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Trust Bancorp	22.64%	11.36%	1.36%
CNB Financial	15.96%	10.73%	0.94%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Community Trust Bancorp and CNB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Trust Bancorp	0	0	2	0	3.00
CNB Financial	0	1	0	0	2.00

Community Trust Bancorp presently has a consensus price target of $48.00, indicating a potential upside of 12.73%. CNB Financial has a consensus price target of $22.00, indicating a potential upside of 11.34%. Given Community Trust Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Community Trust Bancorp is more favorable than CNB Financial.

Summary

Community Trust Bancorp beats CNB Financial on 14 of the 17 factors compared between the two stocks.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.

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.