Critical Comparison: Community Financial System (NYSE:CBU) and Neon Bloom (OTCMKTS:NBCO)

Community Financial System (NYSE:CBU) and Neon Bloom (OTCMKTS:NBCO) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Earnings and Valuation

This table compares Community Financial System and Neon Bloom”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Financial System	$940.71 million	3.29	$182.48 million	$3.88	15.13
Neon Bloom	$32.13 million	0.08	N/A	N/A	N/A

Community Financial System has higher revenue and earnings than Neon Bloom.

Risk and Volatility

Community Financial System has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Neon Bloom has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Profitability

This table compares Community Financial System and Neon Bloom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Financial System	20.72%	11.09%	1.23%
Neon Bloom	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Community Financial System and Neon Bloom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Financial System	0	3	0	0	2.00
Neon Bloom	0	0	0	0	0.00

Community Financial System currently has a consensus price target of $64.00, indicating a potential upside of 9.02%. Given Community Financial System’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Community Financial System is more favorable than Neon Bloom.

Institutional and Insider Ownership

73.8% of Community Financial System shares are owned by institutional investors. 1.0% of Community Financial System shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Community Financial System beats Neon Bloom on 10 of the 10 factors compared between the two stocks.

About Community Financial System

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.

About Neon Bloom

Neon Bloom, Inc. is a principal investment firm specializing in acquisitions. The firm primarily invests in innovative agriculture and ancillary technology products and services across the globe. Neon Bloom, Inc was founded in 2015 and is based in New York, New York.