CF Bankshares (NASDAQ:CFBK – Get Free Report) and Farmers National Banc (NASDAQ:FMNB – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.
Volatility and Risk
CF Bankshares has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Valuation and Earnings
This table compares CF Bankshares and Farmers National Banc”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CF Bankshares | $61.81 million | 3.56 | $17.54 million | $2.91 | 11.80 |
| Farmers National Banc | $279.92 million | 3.31 | $54.59 million | $1.47 | 10.65 |
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.
Institutional & Insider Ownership
41.1% of CF Bankshares shares are owned by institutional investors. Comparatively, 38.7% of Farmers National Banc shares are owned by institutional investors. 17.7% of CF Bankshares shares are owned by insiders. Comparatively, 3.5% of Farmers National Banc shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for CF Bankshares and Farmers National Banc, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CF Bankshares | 0 | 0 | 2 | 0 | 3.00 |
| Farmers National Banc | 0 | 2 | 1 | 0 | 2.33 |
CF Bankshares currently has a consensus target price of $40.00, indicating a potential upside of 16.48%. Farmers National Banc has a consensus target price of $16.00, indicating a potential upside of 2.24%. Given CF Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe CF Bankshares is more favorable than Farmers National Banc.
Dividends
CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Farmers National Banc pays an annual dividend of $0.72 per share and has a dividend yield of 4.6%. CF Bankshares pays out 12.4% of its earnings in the form of a dividend. Farmers National Banc pays out 49.0% 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 CF Bankshares and Farmers National Banc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CF Bankshares | 15.10% | 10.10% | 0.88% |
| Farmers National Banc | 20.52% | 12.03% | 1.21% |
Summary
CF Bankshares beats Farmers National Banc on 10 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 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.
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