Contrasting Bank First National (NASDAQ:BFC) and Parke Bancorp (NASDAQ:PKBK)

Bank First National (NASDAQ:BFC) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Institutional and Insider Ownership

30.0% of Bank First National shares are owned by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are owned by institutional investors. 5.0% of Bank First National shares are owned by insiders. Comparatively, 13.0% of Parke Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Bank First National pays an annual dividend of $2.00 per share and has a dividend yield of 1.4%. Parke Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Bank First National pays out 27.8% of its earnings in the form of a dividend. Parke Bancorp pays out 20.6% 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. Bank First National has raised its dividend for 10 consecutive years. Parke Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Bank First National and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank First National	27.49%	11.89%	1.66%
Parke Bancorp	28.04%	13.02%	1.90%

Earnings and Valuation

This table compares Bank First National and Parke Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank First National	$243.93 million	6.36	$71.50 million	$7.19	19.34
Parke Bancorp	$146.08 million	2.47	$37.78 million	$3.50	8.78

Bank First National has higher revenue and earnings than Parke Bancorp. Parke Bancorp is trading at a lower price-to-earnings ratio than Bank First National, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Bank First National has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Bank First National and Parke Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank First National	1	1	2	1	2.60
Parke Bancorp	0	0	1	0	3.00

Bank First National currently has a consensus price target of $161.00, suggesting a potential upside of 15.81%. Given Bank First National’s higher probable upside, equities research analysts plainly believe Bank First National is more favorable than Parke Bancorp.

About Bank First National

Bank First Corporation operates as a holding company for Bank First, N.A. that provides consumer and commercial financial services to businesses, professionals, consumers, associations, individuals, and governmental authorities in Wisconsin. It offers checking, savings, money market, cash management, retirement, and health savings accounts; other time deposits; certificates of deposit; and residential mortgage products. The company's loan products include real estate loans, including commercial real estate, residential mortgage, and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing, and other business purposes; construction and development loans; residential 1-4 family loans; and consumer loans for personal and household purposes, including secured and unsecured installment loans, and revolving lines of credit. It also provides credit cards; ATM processing; insurance; data processing and other information technology; investment and safekeeping; treasury management; and online, telephone, and mobile banking services. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.