BankFinancial (NASDAQ:BFIN) and Community First Bancshares (NASDAQ:CFBI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Insider and Institutional Ownership

65.1% of BankFinancial shares are owned by institutional investors. Comparatively, 1.7% of Community First Bancshares shares are owned by institutional investors. 15.2% of BankFinancial shares are owned by insiders. Comparatively, 1.4% of Community First Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares BankFinancial and Community First Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BankFinancial $62.59 million 4.04 $9.00 million $0.63 23.03
Community First Bancshares $13.68 million 6.35 N/A N/A N/A

BankFinancial has higher revenue and earnings than Community First Bancshares.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BankFinancial and Community First Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BankFinancial 0 0 1 0 3.00
Community First Bancshares 0 0 0 0 N/A

Volatility & Risk

BankFinancial has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Community First Bancshares has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Dividends

BankFinancial pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. Community First Bancshares does not pay a dividend. BankFinancial pays out 63.5% of its earnings in the form of a dividend. BankFinancial has increased its dividend for 4 consecutive years.

Profitability

This table compares BankFinancial and Community First Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BankFinancial 19.06% 7.72% 0.95%
Community First Bancshares 1.35% 0.27% 0.07%

Summary

BankFinancial beats Community First Bancshares on 9 of the 13 factors compared between the two stocks.

About BankFinancial

BankFinancial Corporation operates as the holding company for BankFinancial, National Association that provides commercial, family, and personal banking products and services in Illinois. The company accepts various deposit products, such as savings, NOW, checking, money market, IRA, and other retirement accounts, as well as certificates of deposit. It also offers multi-family and nonresidential real estate, construction and land, and commercial loans, as well as commercial leases; consumer loans; and one-to-four family residential mortgage loans, including home equity loans and lines of credit. In addition, the company provides various financial products and services, such as cash management, fund transfer, bill payment and other online and mobile banking transactions, automated teller machines, safe deposit boxes, trust, wealth management, and general insurance agency. Further, it offers financial planning services; and sells property and casualty, and other insurance products on an agency basis. It operates 19 full-service banking offices located in Cook, DuPage, Lake, and Will Counties. BankFinancial Corporation was founded in 1924 and is headquartered in Burr Ridge, Illinois.

About Community First Bancshares

Community First Bancshares, Inc. operates as the holding company for Newton Federal Bank that provides various banking products and services in the United States. The company offers various deposit accounts, including checking accounts, savings accounts, and certificate of deposit accounts. It also provides one-to four-family residential real estate loans, commercial real estate loans, commercial and industrial loans, construction and land loans, and consumer loans, as well as multi-family residential real estate loans, and home equity loans and lines of credit. In addition, the company invests in securities; and offers money transfer and other banking services. It operates through a main office and two branch offices in Covington, Georgia; and a loan production office in Bogart, Georgia. The company was founded in 1928 and is based in Covington, Georgia. Community First Bancshares, Inc. is a subsidiary of Community First Bancshares, MHC.

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