Reviewing West Bancorporation (NASDAQ:WTBA) & Chain Bridge Bancorp (NYSE:CBNA)
by Tristan Rich · The Markets DailyWest Bancorporation (NASDAQ:WTBA – Get Free Report) and Chain Bridge Bancorp (NYSE:CBNA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Volatility & Risk
West Bancorporation has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Chain Bridge Bancorp has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.
Valuation & Earnings
This table compares West Bancorporation and Chain Bridge Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| West Bancorporation | $202.45 million | 2.55 | $32.56 million | $2.23 | 13.59 |
| Chain Bridge Bancorp | $59.32 million | 5.59 | $20.24 million | $4.06 | 12.45 |
West Bancorporation has higher revenue and earnings than Chain Bridge Bancorp. Chain Bridge Bancorp is trading at a lower price-to-earnings ratio than West Bancorporation, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for West Bancorporation and Chain Bridge Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| West Bancorporation | 0 | 3 | 1 | 0 | 2.25 |
| Chain Bridge Bancorp | 0 | 3 | 1 | 1 | 2.60 |
West Bancorporation presently has a consensus price target of $29.00, indicating a potential downside of 4.29%. Chain Bridge Bancorp has a consensus price target of $47.50, indicating a potential downside of 6.02%. Given West Bancorporation’s higher possible upside, equities research analysts plainly believe West Bancorporation is more favorable than Chain Bridge Bancorp.
Profitability
This table compares West Bancorporation and Chain Bridge Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| West Bancorporation | 18.75% | 15.48% | 1.03% |
| Chain Bridge Bancorp | 38.64% | 15.42% | 1.44% |
Insider & Institutional Ownership
44.3% of West Bancorporation shares are held by institutional investors. 4.6% of West Bancorporation shares are held by company insiders. Comparatively, 25.4% of Chain Bridge Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Chain Bridge Bancorp beats West Bancorporation on 8 of the 14 factors compared between the two stocks.
About West Bancorporation
West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.
About Chain Bridge Bancorp
Chain Bridge Bancorp, Inc. operates as a Delaware-chartered bank holding company for Chain Bridge Bank, National Association that provides commercial and personal banking, and trust services in the United States. Its deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts. The company’s loan portfolio comprises of residential and commercial real estate loans, commercial loans, and consumer loans. It also provides treasury management, payments, trusts and estate administration, wealth management, and asset custody services. The company was incorporated in 2006 and is headquartered in McLean, Virginia.