CF Bankshares (NASDAQ:CFBK) and American National Bankshares (NASDAQ:AMNB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Dividends
CF Bankshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. American National Bankshares pays an annual dividend of $1.08 per share and has a dividend yield of 3.3%. CF Bankshares pays out 5.9% of its earnings in the form of a dividend. American National Bankshares pays out 34.8% 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. American National Bankshares has increased its dividend for 1 consecutive years. American National Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
24.3% of CF Bankshares shares are owned by institutional investors. Comparatively, 36.5% of American National Bankshares shares are owned by institutional investors. 16.3% of CF Bankshares shares are owned by company insiders. Comparatively, 4.1% of American National Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares CF Bankshares and American National Bankshares' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| CF Bankshares | $46.82 million | 2.24 | $9.60 million | $2.03 | 9.72 |
| American National Bankshares | $108.03 million | 3.28 | $20.91 million | $3.10 | 10.44 |
American National Bankshares has higher revenue and earnings than CF Bankshares. CF Bankshares is trading at a lower price-to-earnings ratio than American National Bankshares, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CF Bankshares has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, American National Bankshares has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.
Profitability
This table compares CF Bankshares and American National Bankshares' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| CF Bankshares | 27.34% | 27.74% | 2.31% |
| American National Bankshares | 25.52% | 8.95% | 1.09% |
Analyst Recommendations
This is a summary of recent recommendations for CF Bankshares and American National Bankshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| CF Bankshares | 0 | 1 | 0 | 0 | 2.00 |
| American National Bankshares | 0 | 1 | 1 | 0 | 2.50 |
CF Bankshares presently has a consensus price target of $12.00, suggesting a potential downside of 39.21%. American National Bankshares has a consensus price target of $30.25, suggesting a potential downside of 6.55%. Given American National Bankshares' stronger consensus rating and higher probable upside, analysts plainly believe American National Bankshares is more favorable than CF Bankshares.
Summary
American National Bankshares beats CF Bankshares on 12 of the 17 factors compared between the two stocks.
