Equitable Financial (OTCMKTS:EQFN) and Central Federal (NASDAQ:CFBK) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

10.1% of Equitable Financial shares are owned by institutional investors. Comparatively, 18.8% of Central Federal shares are owned by institutional investors. 11.3% of Equitable Financial shares are owned by insiders. Comparatively, 18.6% of Central Federal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Equitable Financial and Central Federal, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equitable Financial 0 0 0 0 N/A
Central Federal 0 0 0 0 N/A

Profitability

This table compares Equitable Financial and Central Federal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equitable Financial N/A N/A N/A
Central Federal 20.50% 16.48% 1.24%

Valuation and Earnings

This table compares Equitable Financial and Central Federal’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equitable Financial $17.48 million 1.47 $1.57 million N/A N/A
Central Federal $46.82 million 1.17 $9.60 million N/A N/A

Central Federal has higher revenue and earnings than Equitable Financial.

Risk and Volatility

Equitable Financial has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Central Federal has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Summary

Central Federal beats Equitable Financial on 8 of the 9 factors compared between the two stocks.

Equitable Financial Company Profile

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. It offers deposit products, including checking, savings, and money market deposit accounts, as well as certificates of deposit. The company's lending products include commercial lines of credit and term loans, commercial real estate loans, agricultural operating loans, agricultural real estate loans, and one-to four-family residential real estate loans, as well as home equity loans, construction and land loans, and consumer loans. It also offers retail brokerage services under the Equitable Wealth Management name; and invests in securities. Equitable Financial Corp. operates through its main office in Grand Island, Nebraska; one full-service branch in each of Grand Island, North Platte, and Omaha, Nebraska; and one additional limited service branch in Grand Island. The company was founded in 1882 and is headquartered in Grand Island, Nebraska. Equitable Financial Corp. is a subsidiary of Equitable Financial MHC.

Central Federal Company Profile

Central Federal Corporation 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, and money market accounts, as well as certificates of deposit. It also offers single-family mortgage loans; commercial real estate and multi-family residential mortgage loans; commercial loans; construction and land loans; and consumer loans, such as home equity lines of credit, automobile loans, home improvement loans, and loans secured by deposits, as well as other loans. In addition, the company provides Internet and mobile banking, remote deposit, and corporate treasury management services. As of December 31, 2018, it operated five branch offices located in Franklin, Hamilton, Summit, and Columbiana Counties; and a loan production office located in Franklin County; and an agency office located in Cuyahoga County, Ohio. Central Federal Corporation was founded in 1892 and is based in Worthington, Ohio.

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