Contrasting Farmers National Banc (NASDAQ:FMNB) and CF Bankshares (NASDAQ:CFBK)

CF Bankshares (NASDAQ:CFBK) and Farmers National Banc (NASDAQ:FMNB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Volatility & Risk

CF Bankshares has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares CF Bankshares and Farmers National Banc”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$125.92 million	1.74	$17.54 million	$3.46	9.87
Farmers National Banc	$279.92 million	3.31	$54.59 million	$1.39	11.25

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

Dividends

CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Farmers National Banc pays an annual dividend of $0.72 per share and has a dividend yield of 4.6%. CF Bankshares pays out 10.4% of its earnings in the form of a dividend. Farmers National Banc pays out 51.8% 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. CF Bankshares has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CF Bankshares and Farmers National Banc, as provided 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 17.13%. Farmers National Banc has a consensus target price of $17.00, indicating a potential upside of 8.70%. Given CF Bankshares’ stronger consensus rating and higher probable upside, equities analysts clearly believe CF Bankshares is more favorable than Farmers National Banc.

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	18.08%	11.92%	1.05%
Farmers National Banc	19.60%	12.90%	1.34%

Insider and Institutional Ownership

41.1% of CF Bankshares shares are held by institutional investors. Comparatively, 38.7% of Farmers National Banc shares are held by institutional investors. 17.7% of CF Bankshares shares are held by company insiders. Comparatively, 3.5% of Farmers National Banc shares are held 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.

Summary

Farmers National Banc beats CF Bankshares on 9 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.