Comparing CF Bankshares (NASDAQ:CFBK) & Northeast Bancorp (NASDAQ:NBN)

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

Dividends

Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Northeast Bancorp pays out 0.3% 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. CF Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northeast Bancorp	28.34%	20.02%	2.25%
CF Bankshares	18.08%	11.76%	1.04%

Valuation and Earnings

This table compares Northeast Bancorp and CF Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Bancorp	$385.07 million	2.71	$107.48 million	$13.47	9.44
CF Bankshares	$125.92 million	1.88	$17.54 million	$3.46	10.20

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

Analyst Ratings

This is a summary of current recommendations for Northeast Bancorp and CF Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Bancorp	0	1	2	0	2.67
CF Bankshares	0	0	2	0	3.00

Northeast Bancorp presently has a consensus target price of $143.50, suggesting a potential upside of 12.90%. CF Bankshares has a consensus target price of $40.00, suggesting a potential upside of 13.33%. Given CF Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe CF Bankshares is more favorable than Northeast Bancorp.

Risk & Volatility

Northeast Bancorp has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Institutional and Insider Ownership

41.1% of CF Bankshares shares are owned by institutional investors. 14.2% of Northeast Bancorp shares are owned by company insiders. Comparatively, 17.7% of CF Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Northeast Bancorp beats CF Bankshares on 9 of the 16 factors compared between the two stocks.

About Northeast Bancorp

Northeast Bancorp is a bank holding company headquartered in Lewiston, Maine. Through its subsidiary, Northeast Bank, it provides banking services to businesses and individuals, including deposit accounts, commercial and consumer loans, residential mortgage lending, and cash management services. The bank serves customers through branches in Maine and also operates a commercial lending business that works with borrowers beyond the state. Its lending activities include financing for businesses and commercial real estate, while its banking services include digital and online banking options.

About CF Bankshares

CF Bankshares Inc. is the bank holding company for CFBank, a community-focused financial institution headquartered in Columbus, Ohio. CFBank provides banking services to individuals, families, businesses and professional clients through its branch network and digital banking channels. The bank’s offerings include checking and savings accounts, certificates of deposit, residential mortgages, home equity financing, consumer loans and commercial lending. It also provides business banking services such as commercial real estate and construction loans, treasury management, deposit services and other financing solutions for small and middle-market businesses.