Analyzing CF Bankshares (NASDAQ:CFBK) & Bankinter (OTCMKTS:BKNIY)

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

Dividends

Bankinter pays an annual dividend of $0.45 per share and has a dividend yield of 2.7%. CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Bankinter pays out 30.2% 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.

Risk and Volatility

Bankinter has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.27 billion	2.82	$1.23 billion	$1.49	11.11
CF Bankshares	$63.01 million	3.62	$17.54 million	$3.46	10.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bankinter	24.51%	17.89%	0.88%
CF Bankshares	18.08%	11.92%	1.05%

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Bankinter and CF Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	2	2	1	2.50
CF Bankshares	0	0	2	0	3.00

CF Bankshares has a consensus price target of $40.00, suggesting a potential upside of 12.48%. Given CF Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe CF Bankshares is more favorable than Bankinter.

Summary

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

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.

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.