Comparison between CF Bankshares (NASDAQ:CFBK) and City (NASDAQ:CHCO)


CF Bank Shares (NASDAQ: CFBKGet a rating) and City (NASDAQ: CHCOGet a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Institutional and insider ownership

33.2% of CF Bankshares shares are held by institutional investors. By comparison, 64.1% of City shares are held by institutional investors. 16.7% of CF Bankshares shares are held by insiders. By comparison, 2.6% of City shares are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.

Dividends

CF Bankshares pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. City pays an annual dividend of $2.40 per share and has a dividend yield of 3.1%. CF Bankshares pays 6.4% of its profits as a dividend. City pays 41.2% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. City have increased their dividend for 9 consecutive years. City is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares the net margins, return on equity and return on assets of CF Bankshares and City.

Net margins Return on equity return on assets
CF Banking Stocks 28.49% 13.33% 1.12%
Town 38.11% 13.31% 1.50%

Valuation and benefits

This table compares the gross revenue, earnings per share (EPS) and valuation of CF Bankshares and City.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
CF Banking Stocks $63.99 million 1.71 $18.45 million $2.50 8.36
Town $235.11 million 5.01 $88.08 million $5.83 1:50 p.m.

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

Analyst Notes

This is a breakdown of recent recommendations and price targets for CF Bankshares and City, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
CF Banking Stocks 0 0 0 0 N / A
Town 0 0 0 0 N / A

Volatility and risk

CF Bankshares has a beta of 0.71, suggesting its stock price is 29% less volatile than the S&P 500. By comparison, City has a beta of 0.56, suggesting its stock price is 44% less volatile than the S&P 500.

Summary

City beat CF Bankshares on 10 of the 14 factors compared between the two stocks.

CF Bankshares Company Profile (Get a rating)

CF Bankshares Inc. operates as a bank holding company for CFBank, the national association that provides various banking products and services in the United States. The company accepts savings, retail and business checking accounts, money market accounts, and certificates of deposit. It also offers single-family mortgages; commercial real estate loans and multi-family residential mortgages; business loans; construction and land loans; and 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. In addition, the Company provides internet and mobile banking, remote deposits and cash management deposit services. As of December 31, 2021, it operated five branches located in Franklin, Cuyahoga, Hamilton, and Summit counties, Ohio; and a loan origination office located in Franklin County, Ohio. 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 Worthington, Ohio.

City Company Profile (Get a rating)

City Holding Company operates as a holding company for City National Bank of West Virginia which provides various banking, trust and investment management, and other financial solutions in the United States. The company offers checking, savings and money market accounts, as well as certificates of deposit and individual retirement accounts. It also grants commercial and industrial loans, which consist of loans to companies and other corporate borrowers, mainly in small and medium-sized industrial and commercial enterprises; commercial real estate loans including commercial mortgages, which are secured by non-residential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinancing of a residence; first priority home equity loans; consumer loans secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit and other personal property; and overdrafts on sight accounts. In addition, the Company offers mortgage banking services, including fixed and adjustable rate mortgages, construction financing, land lending, conventional and government insured mortgage origination, secondary marketing and service. Mortgages. Additionally, it provides custodial services for business customers including cash management, safe deposit box and other cash management services; merchant credit card services; wealth management, trust, investment and custodial services for commercial and retail clients; and corporate trust and institutional custodial, financial and estate planning, and retirement plan services, as well as automated banking machines, interactive banking machines, mobile banking, interactive voice response systems, and credit and debit cards. The company operates through a network of 94 branch offices and 905 full-time equivalent associates in West Virginia, Virginia, Kentucky and Ohio. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.



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