AmeriServ Financial (NASDAQ:ASRV) and CHESAPEAKE FINL/SH (OTCMKTS:CPKF) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Risk and Volatility

AmeriServ Financial has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, CHESAPEAKE FINL/SH has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares AmeriServ Financial and CHESAPEAKE FINL/SH’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmeriServ Financial $61.32 million 1.19 $7.77 million N/A N/A
CHESAPEAKE FINL/SH $51.05 million 2.12 $10.82 million $2.61 10.09

CHESAPEAKE FINL/SH has lower revenue, but higher earnings than AmeriServ Financial.

Analyst Ratings

This is a summary of recent recommendations for AmeriServ Financial and CHESAPEAKE FINL/SH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmeriServ Financial 0 0 0 0 N/A
CHESAPEAKE FINL/SH 0 0 0 0 N/A

Dividends

AmeriServ Financial pays an annual dividend of $0.10 per share and has a dividend yield of 2.4%. CHESAPEAKE FINL/SH pays an annual dividend of $0.58 per share and has a dividend yield of 2.2%. CHESAPEAKE FINL/SH pays out 22.2% of its earnings in the form of a dividend. AmeriServ Financial has increased its dividend for 3 consecutive years. AmeriServ Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

42.4% of AmeriServ Financial shares are held by institutional investors. Comparatively, 3.0% of CHESAPEAKE FINL/SH shares are held by institutional investors. 9.7% of AmeriServ Financial shares are held by company insiders. Comparatively, 39.5% of CHESAPEAKE FINL/SH shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares AmeriServ Financial and CHESAPEAKE FINL/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmeriServ Financial 12.66% 8.06% 0.67%
CHESAPEAKE FINL/SH 18.67% 11.78% 1.29%

Summary

CHESAPEAKE FINL/SH beats AmeriServ Financial on 8 of the 13 factors compared between the two stocks.

About AmeriServ Financial

AmeriServ Financial Inc. operates as the bank holding company for AmeriServ Financial Bank that provides various consumer, mortgage, and commercial financial products. It offers retail banking services, such as demand, savings, and time deposits; checking and money market accounts; secured and unsecured consumer loans, and mortgage loans; and safe deposit boxes, holiday club accounts, money orders, and traveler's checks. The company also provides lending, depository, and related financial services, such as commercial real estate mortgage loans, short and medium-term loans, revolving credit arrangements, lines of credit, inventory and accounts receivable financing, real estate-construction loans, business savings accounts, certificates of deposit, wire transfers, night depository, and lock box services to commercial, industrial, financial, and governmental customers. In addition, the company offers personal trust products and services, including personal portfolio investment management, estate planning and administration, custodial services, and pre-need trusts; institutional trust products and services comprising 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts; financial services consisting of the sale of mutual funds, annuities, and insurance products; and union collective investment funds to invest union pension dollars in construction projects that utilize union labor. Further, it engages in underwriting as reinsurer of credit life and disability insurance. The company operates through a network of 16 banking locations in Allegheny, Cambria, Centre, Somerset, Westmoreland counties, Pennsylvania, and Washington County, Maryland; and operates 17 automated bank teller machines. AmeriServ Financial, Inc. is headquartered in Johnstown, Pennsylvania.

About CHESAPEAKE FINL/SH

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for corporate and individual clients in Virginia. It operates through Commercial, Commercial – Real Estate, Consumer – Non Real Estate, and Residential – Real Estate segments. The company offers interest and noninterest checking, savings, and money market accounts, as well as certificates of deposit. It also provides mortgage loans, single-family residential and residential construction loans, lines of credit, and consumer loans; and commercial loans, including owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans. In addition, the company offers merchant processing services, accounts receivable financing, wealth management and trust, and cash management services. It operates through 15 branches, including 4 in Northern Neck, 3 in Middle Peninsula, 5 in Williamsburg, and 3 in Richmond. The company was founded in 1900 and is based in Kilmarnock, Virginia.

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