CF Bankshares (NASDAQ:CFBK) & First Bank (NASDAQ:FRBA) Head to Head Contrast

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$245.83 million	2.01	$43.66 million	$1.71	11.52
CF Bankshares	$63.01 million	3.56	$17.54 million	$3.46	10.11

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.

Dividends

First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 1.8%. CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. First Bank pays out 21.1% 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.

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%	11.92%	1.05%

Institutional and Insider 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 will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations 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, indicating a potential downside of 0.17%. CF Bankshares has a consensus price target of $40.00, indicating a potential upside of 14.32%. Given CF Bankshares’ higher probable upside, analysts clearly believe CF Bankshares is more favorable than First Bank.

Risk & Volatility

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

Summary

First Bank beats CF Bankshares on 9 of the 17 factors compared between the two stocks.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

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.