Contrasting CF Bankshares (NASDAQ:CFBK) and Farmers National Banc (NASDAQ:FMNB)

Farmers National Banc (NASDAQ:FMNB) 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 institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Profitability

This table compares Farmers National Banc and CF Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	20.52%	12.03%	1.21%
CF Bankshares	15.10%	10.10%	0.88%

Earnings & Valuation

This table compares Farmers National Banc and CF Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$279.92 million	3.31	$54.59 million	$1.47	10.65
CF Bankshares	$61.81 million	3.56	$17.54 million	$2.91	11.80

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

Insider & Institutional Ownership

38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 41.1% of CF Bankshares shares are held by institutional investors. 3.5% of Farmers National Banc shares are held by company insiders. Comparatively, 17.7% of CF Bankshares shares are held 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.

Dividends

Farmers National Banc pays an annual dividend of $0.72 per share and has a dividend yield of 4.6%. CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Farmers National Banc pays out 49.0% of its earnings in the form of a dividend. CF Bankshares pays out 12.4% 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Farmers National Banc and CF Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	0	2	1	0	2.33
CF Bankshares	0	0	2	0	3.00

Farmers National Banc presently has a consensus target price of $16.00, suggesting a potential upside of 2.24%. CF Bankshares has a consensus target price of $40.00, suggesting a potential upside of 16.48%. Given CF Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe CF Bankshares is more favorable than Farmers National Banc.

Volatility & Risk

Farmers National Banc has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Summary

CF Bankshares beats Farmers National Banc on 10 of the 17 factors compared between the two stocks.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.

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.