Head to Head Survey: First Business Financial Services (NASDAQ:FBIZ) & Chester Bancorp (OTCMKTS:CNBA)

Chester Bancorp (OTCMKTS:CNBA) and First Business Financial Services (NASDAQ:FBIZ) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

This table compares Chester Bancorp and First Business Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chester Bancorp	N/A	N/A	N/A	N/A	N/A
First Business Financial Services	$279.25 million	1.72	$50.32 million	$5.95	9.72

First Business Financial Services has higher revenue and earnings than Chester Bancorp.

Analyst Ratings

This is a summary of current ratings and recommmendations for Chester Bancorp and First Business Financial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chester Bancorp	0	0	0	0	0.00
First Business Financial Services	0	0	4	0	3.00

First Business Financial Services has a consensus price target of $67.00, suggesting a potential upside of 15.80%. Given First Business Financial Services’ stronger consensus rating and higher possible upside, analysts plainly believe First Business Financial Services is more favorable than Chester Bancorp.

Dividends

Chester Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 19.2%. First Business Financial Services pays an annual dividend of $1.36 per share and has a dividend yield of 2.4%. First Business Financial Services pays out 22.9% of its earnings in the form of a dividend. First Business Financial Services has increased its dividend for 13 consecutive years.

Volatility and Risk

Chester Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, First Business Financial Services has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares Chester Bancorp and First Business Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chester Bancorp	N/A	N/A	N/A
First Business Financial Services	18.02%	15.05%	1.26%

Institutional & Insider Ownership

60.1% of First Business Financial Services shares are held by institutional investors. 38.8% of Chester Bancorp shares are held by company insiders. Comparatively, 5.1% of First Business Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

First Business Financial Services beats Chester Bancorp on 10 of the 13 factors compared between the two stocks.

About Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, Illinois.

About First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.