Analyzing CF Bankshares (NASDAQ:CFBK) & First Bank (NASDAQ:FRBA)

First Bank (NASDAQ:FRBA) and CF Bankshares (NASDAQ:CFBK) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability

This table compares First Bank and CF Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bank	17.73%	9.58%	1.07%
CF Bankshares	18.08%	11.76%	1.04%

Risk & Volatility

First Bank has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Insider & Institutional Ownership

64.9% of First Bank shares are owned by institutional investors. Comparatively, 41.1% of CF Bankshares shares are owned by institutional investors. 13.1% of First Bank shares are owned by insiders. Comparatively, 17.7% 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 is poised for long-term growth.

Dividends

First Bank pays an annual dividend of $0.48 per share and has a dividend yield of 2.4%. CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. First Bank pays out 28.1% of its earnings in the form of a dividend. CF Bankshares pays out 10.4% 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. CF Bankshares has raised its dividend for 4 consecutive years.

Valuation & Earnings

This table compares First Bank and CF Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$150.56 million	3.30	$43.66 million	$1.71	11.56
CF Bankshares	$125.92 million	1.88	$17.54 million	$3.46	10.21

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

Analyst Ratings

This is a breakdown of current ratings and target prices for First Bank and CF Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bank	0	1	3	1	3.00
CF Bankshares	0	0	2	0	3.00

First Bank currently has a consensus price target of $19.67, suggesting a potential downside of 0.52%. CF Bankshares has a consensus price target of $40.00, suggesting a potential upside of 13.25%. Given CF Bankshares’ higher probable upside, analysts plainly believe CF Bankshares is more favorable than First Bank.

Summary

First Bank beats CF Bankshares on 10 of the 17 factors compared between the two stocks.

About First Bank

First Bank is a community bank headquartered in Hamilton, New Jersey, serving individuals, businesses and organizations in New Jersey and eastern Pennsylvania. The bank began operations in 2007 and has expanded its branch network across the region. Its services include business and personal deposit accounts, commercial and consumer loans, and online and mobile banking. First Bank has a particular focus on commercial banking, including lending to businesses and financing commercial real estate.

About CF Bankshares

CF Bankshares Inc. is a bank holding company for CFBank, a nationally chartered community bank headquartered in Columbus, Ohio. The bank serves customers in Ohio markets through its branch network and digital banking services. CFBank provides commercial, small-business, consumer and mortgage banking. Its offerings include business and real estate loans, deposit accounts, treasury management services, and residential mortgage products. The bank focuses on individuals, professionals, entrepreneurs and businesses, with services designed to support both everyday banking needs and commercial financing.