Analyzing CF Bankshares (NASDAQ:CFBK) and Peoples Financial Services (NASDAQ:PFIS)

Peoples Financial Services (NASDAQ:PFIS – Get Free Report) and CF Bankshares (NASDAQ:CFBK – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Volatility & Risk

Peoples Financial Services has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Institutional and Insider Ownership

31.7% of Peoples Financial Services shares are held by institutional investors. Comparatively, 41.1% of CF Bankshares shares are held by institutional investors. 4.1% of Peoples Financial Services shares are held by company insiders. Comparatively, 21.0% of CF Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Peoples Financial Services pays an annual dividend of $2.47 per share and has a dividend yield of 5.1%. CF Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Peoples Financial Services pays out 29.2% of its earnings in the form of a dividend. CF Bankshares pays out 12.9% 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. Peoples Financial Services has raised its dividend for 8 consecutive years and CF Bankshares has raised its dividend for 4 consecutive years. Peoples Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Peoples Financial Services and CF Bankshares, as provided by MarketBeat.

Peoples Financial Services presently has a consensus target price of $50.00, suggesting a potential upside of 2.54%. CF Bankshares has a consensus target price of $29.00, suggesting a potential upside of 16.89%. Given CF Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe CF Bankshares is more favorable than Peoples Financial Services.

Profitability

This table compares Peoples Financial Services and CF Bankshares’ net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Peoples Financial Services and CF Bankshares”s top-line revenue, earnings per share and valuation.

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

Summary

CF Bankshares beats Peoples Financial Services on 9 of the 17 factors compared between the two stocks.

About Peoples Financial Services

(Get Free Report)

Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides various commercial and retail banking services. The company accepts money market, negotiable order of withdrawal, savings, individual retirement, demand deposit, and certificates of deposit accounts. It also provides residential real estate, automobile, manufactured housing, personal, and home equity loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights. In addition, the company offers fiduciary and investment services; investment management, IRA trustee, estate administration, living and life insurance trust, trustee under will, guardianship, custodial/IRA custodial, and corporate trust services, as well as pension and profit-sharing plans. Further, it provides wealth management products and services comprising investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities, brokerage, and investor services. Additionally, the company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services; and remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, safe deposit box, night depository, direct deposit, and official check services. It serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers. Peoples Financial Services Corp. was founded in 1905 and is headquartered in Scranton, Pennsylvania.

About CF Bankshares

(Get Free Report)

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.