Critical Contrast: Bank7 (NASDAQ:BSVN) versus Chemung Financial (NASDAQ:CHMG)

Bank7 (NASDAQ:BSVN) and Chemung Financial (NASDAQ:CHMG) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations for Bank7 and Chemung Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank7 0 0 3 0 3.00
Chemung Financial 0 3 1 0 2.25

Bank7 currently has a consensus target price of $23.00, indicating a potential upside of 29.14%. Chemung Financial has a consensus target price of $44.50, indicating a potential upside of 4.46%. Given Bank7’s stronger consensus rating and higher possible upside, analysts plainly believe Bank7 is more favorable than Chemung Financial.

Institutional & Insider Ownership

33.4% of Bank7 shares are owned by institutional investors. Comparatively, 35.9% of Chemung Financial shares are owned by institutional investors. 63.4% of Bank7 shares are owned by insiders. Comparatively, 19.0% of Chemung Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Bank7 and Chemung Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank7 $48.13 million 3.77 $25.00 million $2.44 7.30
Chemung Financial $87.63 million 2.35 $19.63 million $3.80 11.21

Bank7 has higher earnings, but lower revenue than Chemung Financial. Bank7 is trading at a lower price-to-earnings ratio than Chemung Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Chemung Financial pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. Bank7 does not pay a dividend. Chemung Financial pays out 27.4% of its earnings in the form of a dividend.

Profitability

This table compares Bank7 and Chemung Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank7 44.09% 25.13% 2.94%
Chemung Financial 24.94% 11.97% 1.14%

Summary

Bank7 beats Chemung Financial on 10 of the 15 factors compared between the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers in Oklahoma, Kansas, and Texas. It accepts demand, savings, checking, money market, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company also provides commercial real estate, hospitality, energy, and commercial and industrial loans; and consumer loans, such as secured and unsecured term loans and home improvement loans; and residential real estate loans, mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as ATM services. It operates through seven branches in Oklahoma, Texas, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 2004 and is headquartered in Oklahoma City, Oklahoma.

About Chemung Financial

Chemung Financial Corporation operates as a bank. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. It's deposits include jumbo deposits and retail time deposits. The bank provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The company offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. The company offers domestic and foreign commercial and industrial loans. The company offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, it has an asset value of 1.7 million USD. The bank has generated a net income of 7,430 USD in December 31, 2017. Chemung Financial Corporation was founded in 1833 and is based in Elmira, New York.

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