Citizens Financial Services (NASDAQ:CZFS – Get Free Report) and AmeriServ Financial (NASDAQ:ASRV – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Citizens Financial Services and AmeriServ Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Citizens Financial Services | 22.47% | 11.89% | 1.30% |
| AmeriServ Financial | 6.20% | 4.72% | 0.38% |
Valuation and Earnings
This table compares Citizens Financial Services and AmeriServ Financial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citizens Financial Services | $173.51 million | 1.77 | $36.57 million | $8.19 | 7.81 |
| AmeriServ Financial | $60.00 million | 1.09 | $5.61 million | $0.33 | 11.71 |
Citizens Financial Services has higher revenue and earnings than AmeriServ Financial. Citizens Financial Services is trading at a lower price-to-earnings ratio than AmeriServ Financial, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
22.5% of Citizens Financial Services shares are held by institutional investors. Comparatively, 31.5% of AmeriServ Financial shares are held by institutional investors. 5.5% of Citizens Financial Services shares are held by insiders. Comparatively, 7.6% of AmeriServ Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Citizens Financial Services has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, AmeriServ Financial has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Citizens Financial Services and AmeriServ Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citizens Financial Services | 0 | 2 | 0 | 1 | 2.67 |
| AmeriServ Financial | 0 | 0 | 1 | 0 | 3.00 |
Dividends
Citizens Financial Services pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. AmeriServ Financial pays an annual dividend of $0.12 per share and has a dividend yield of 3.1%. Citizens Financial Services pays out 24.4% of its earnings in the form of a dividend. AmeriServ Financial pays out 36.4% 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. Citizens Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Citizens Financial Services beats AmeriServ Financial on 10 of the 16 factors compared between the two stocks.
About Citizens Financial Services
Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.
About AmeriServ Financial
AmeriServ Financial, Inc. is a holding company, which engages in the provision of consumer, mortgage and commercial financial products and services through its subsidiary. It operates through the following segments: Community Banking, Wealth Management, and Investment or Parent. The Community Banking segment includes both retail and commercial banking activities. The Wealth Management segment involves in the operations of a Trust Company, West Chester Capital Advisors an investment advisory firm, and Financial Services. The Investment or Parent segment offers investment securities, borrowing activities, and general corporate expenses. The company was founded in January 1983 and is headquartered in Johnstown, PA.
Receive News & Ratings for Citizens Financial Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Citizens Financial Services and related companies with MarketBeat.com's FREE daily email newsletter.
