Critical Contrast: BANCO DO BRASIL/S (OTCMKTS:BDORY) & CF Bankshares (NASDAQ:CFBK)

BANCO DO BRASIL/S (OTCMKTS:BDORY) and CF Bankshares (NASDAQ:CFBK) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares BANCO DO BRASIL/S and CF Bankshares’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BANCO DO BRASIL/S	$53.93 billion	0.56	$5.98 billion	$1.13	4.61
CF Bankshares	$112.31 million	0.90	$16.94 million	$2.40	8.23

BANCO DO BRASIL/S has higher revenue and earnings than CF Bankshares. BANCO DO BRASIL/S is trading at a lower price-to-earnings ratio than CF Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BANCO DO BRASIL/S and CF Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BANCO DO BRASIL/S	11.65%	19.16%	1.54%
CF Bankshares	13.25%	10.17%	0.77%

Risk and Volatility

BANCO DO BRASIL/S has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BANCO DO BRASIL/S and CF Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BANCO DO BRASIL/S	0	0	0	0	N/A
CF Bankshares	0	0	0	0	N/A

Insider and Institutional Ownership

0.0% of BANCO DO BRASIL/S shares are owned by institutional investors. Comparatively, 41.1% of CF Bankshares shares are owned by institutional investors. 19.7% of CF Bankshares shares are owned by 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.

Dividends

BANCO DO BRASIL/S pays an annual dividend of $0.11 per share and has a dividend yield of 2.1%. CF Bankshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. BANCO DO BRASIL/S pays out 9.7% of its earnings in the form of a dividend. CF Bankshares pays out 10.0% 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. BANCO DO BRASIL/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

BANCO DO BRASIL/S beats CF Bankshares on 7 of the 13 factors compared between the two stocks.

About BANCO DO BRASIL/S

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.

About CF Bankshares

CF Bankshares Inc. operates as the bank holding company for CFBank, National Association that provides various banking products and services in the United States. The company accepts savings, retail and business checking accounts, and money market accounts, as well as certificates of deposit. It offers single-family mortgage loans; commercial real estate and multi-family residential mortgage loans; commercial loans and equipment leases; residential real estate loans and treasury management depository services; retail banking services and products. In addition, the company offers consumer loans, such as home equity lines of credit, home improvement loans, and loans secured by deposits and purchased loans, as well as other loans. Further, it provides online internet banking, mobile banking, and remote deposits. The company was formerly known as Central Federal Corporation and changed its name to CF Bankshares Inc. in July 2020. CF Bankshares Inc. was founded in 1892 and is based in Columbus, Ohio.