Comparing WCF Bancorp (OTCMKTS:WCFB) & SB Financial Group (NASDAQ:SBFG)

WCF Bancorp (OTCMKTS:WCFB) and SB Financial Group (NASDAQ:SBFG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WCF Bancorp	0	0	0	0	0.00
SB Financial Group	0	0	1	1	3.50

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WCF Bancorp	N/A	N/A	N/A
SB Financial Group	13.78%	9.57%	0.87%

Risk and Volatility

WCF Bancorp has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, SB Financial Group has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Insider & Institutional Ownership

66.7% of SB Financial Group shares are owned by institutional investors. 0.8% of WCF Bancorp shares are owned by insiders. Comparatively, 5.7% of SB Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares WCF Bancorp and SB Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WCF Bancorp	$11.85 million	1.15	-$40,000.00	N/A	N/A
SB Financial Group	$64.59 million	2.12	$11.47 million	$2.12	10.21

SB Financial Group has higher revenue and earnings than WCF Bancorp.

Dividends

WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. SB Financial Group pays an annual dividend of $0.62 per share and has a dividend yield of 2.9%. SB Financial Group pays out 29.2% of its earnings in the form of a dividend. SB Financial Group has raised its dividend for 12 consecutive years. SB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

SB Financial Group beats WCF Bancorp on 14 of the 15 factors compared between the two stocks.

About WCF Bancorp

WCF Bancorp, Inc. operates as the bank holding company for WCF Financial Bank that provides commercial banking products and services to individuals and businesses. The company offers checking and saving accounts; certificates of deposit; personal, mortgage, business, agricultural, and commercial real estate loans; debit and credit cards; and other products. It operates through full-service offices in Webster City, Independence, and Tama, Iowa. The company was founded in 1934 and is based in Webster City, Iowa.

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.