SB Financial Group (NASDAQ:SBFG) vs. John Marshall Bancorp (NASDAQ:JMSB) Head to Head Comparison

SB Financial Group (NASDAQ:SBFG) and John Marshall Bancorp (NASDAQ:JMSB) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for SB Financial Group and John Marshall Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SB Financial Group	0	0	0	0	N/A
John Marshall Bancorp	0	0	0	0	N/A

Earnings and Valuation

This table compares SB Financial Group and John Marshall Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SB Financial Group	$56.14 million	1.69	$12.10 million	$1.75	8.01
John Marshall Bancorp	$85.83 million	2.82	$5.16 million	$0.22	77.28

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

Insider and Institutional Ownership

66.7% of SB Financial Group shares are owned by institutional investors. Comparatively, 39.1% of John Marshall Bancorp shares are owned by institutional investors. 4.1% of SB Financial Group shares are owned by company insiders. Comparatively, 12.7% of John Marshall Bancorp shares are owned by company 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

SB Financial Group pays an annual dividend of $0.56 per share and has a dividend yield of 4.0%. John Marshall Bancorp pays an annual dividend of $0.22 per share and has a dividend yield of 1.3%. SB Financial Group pays out 32.0% of its earnings in the form of a dividend. John Marshall Bancorp pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SB Financial Group has increased its dividend for 11 consecutive years. SB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SB Financial Group	15.47%	10.00%	0.89%
John Marshall Bancorp	3.42%	7.82%	0.77%

Volatility and Risk

SB Financial Group has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, John Marshall Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

SB Financial Group beats John Marshall Bancorp on 10 of the 14 factors compared between the two stocks.

About SB Financial Group

SB Financial Group, Inc. operates as the financial holding company for the State Bank and Trust Company that provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and 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, it sells insurance products to retail and commercial customers. 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 1902 and is based in Defiance, Ohio.

About John Marshall Bancorp

John Marshall Bancorp, Inc. operates as the bank holding company for John Marshall Bank that provides banking products and financial services. The company accepts checking, demand, NOW, savings, and money market accounts, as well as certificates of deposit. It offers residential and commercial construction and development loans, commercial term, mortgage, commercial real estate, industrial loans, and other commercial lines of credit; debit and credit cards; and treasury and cash management, investment, business and personal insurance, remote deposit capture, deposit sweep and online and mobile banking services. The company serves small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. The company was founded in 2005 and is headquartered in Reston, Virginia.