CF Bankshares (NASDAQ:CFBK) vs. Northeast Bancorp (NASDAQ:NBN) Head to Head Contrast

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

Profitability

This table compares CF Bankshares and Northeast Bancorp’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%
Northeast Bancorp	28.34%	20.02%	2.25%

Insider and Institutional Ownership

41.1% of CF Bankshares shares are held by institutional investors. 17.7% of CF Bankshares shares are held by insiders. Comparatively, 14.2% of Northeast Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CF Bankshares and Northeast Bancorp, as reported by MarketBeat.com.

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

CF Bankshares currently has a consensus price target of $40.00, suggesting a potential upside of 15.64%. Northeast Bancorp has a consensus price target of $143.50, suggesting a potential upside of 14.86%. Given CF Bankshares’ stronger consensus rating and higher probable upside, equities analysts plainly believe CF Bankshares is more favorable than Northeast Bancorp.

Dividends

CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. CF Bankshares pays out 10.4% of its earnings in the form of a dividend. Northeast Bancorp pays out 0.3% 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$63.01 million	3.52	$17.54 million	$3.46	10.00
Northeast Bancorp	$222.55 million	4.61	$107.48 million	$13.47	9.27

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.

Volatility & Risk

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

Summary

Northeast Bancorp beats CF Bankshares on 9 of the 16 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 Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.