Critical Survey: CF Bankshares (NASDAQ:CFBK) vs. First Resource Bancorp (OTCMKTS:FRSB)

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

Insider and Institutional Ownership

41.1% of CF Bankshares shares are held by institutional investors. 17.7% of CF Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CF Bankshares and First Resource Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$125.92 million	1.60	$17.54 million	$2.78	11.30
First Resource Bancorp	$44.33 million	1.60	$8.16 million	$2.98	7.89

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

Volatility and Risk

CF Bankshares has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, First Resource Bancorp has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Dividends

CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. First Resource Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. CF Bankshares pays out 12.9% of its earnings in the form of a dividend. First Resource Bancorp pays out 2.7% 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. CF Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CF Bankshares and First Resource Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CF Bankshares	0	1	2	0	2.67
First Resource Bancorp	0	0	0	0	0.00

CF Bankshares currently has a consensus price target of $36.00, indicating a potential upside of 14.58%. Given CF Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe CF Bankshares is more favorable than First Resource Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CF Bankshares	14.37%	9.86%	0.85%
First Resource Bancorp	19.11%	N/A	N/A

Summary

CF Bankshares beats First Resource Bancorp on 14 of the 17 factors compared between the two stocks.

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.

About First Resource Bancorp

First Resource Bancorp, Inc. operates as the bank holding for First Resource Bank that provides personal and business banking products and services to businesses and families primarily in the southeastern area of Pennsylvania. The company's offers savings, checking, and money market accounts, as well as certificate deposit account registry services, insured cash sweeps, certificates of deposit, and IRAs. Its loan products include commercial mortgages, construction loans, working capital credit lines, small business administration loans, commercial term loans, home equity lines of credit, fixed payment home equity loans, residential construction loans, land loans, overdraft protection, vehicle loans, unsecured installment loans, certificate of deposit secured installment loans, and swing loans. The company also provides personal financial statements; credit and debit cards; digital banking services; and cash management, positive pay, ACH origination, sweep/transfer of funds, ATM, over the counter checks, bill payment, wire transfer, signature guarantee/notary, safe deposit box, drive-up banking, night depository, foreign currency exchange, cashier's check, e-statements, and stop payments, as well as telephone, messaging and text, online, and mobile banking services. First Resource Bancorp, Inc. was founded in 2005 and is based in Exton, Pennsylvania.