Contrasting CF Bankshares (NASDAQ:CFBK) and Jeffersonville Bancorp (OTCMKTS:JFBC)

Jeffersonville Bancorp (OTCMKTS:JFBC) and CF Bankshares (NASDAQ:CFBK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Jeffersonville Bancorp and CF Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jeffersonville Bancorp	0	0	0	0	0.00
CF Bankshares	0	1	2	0	2.67

CF Bankshares has a consensus price target of $33.50, indicating a potential upside of 17.46%. Given CF Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe CF Bankshares is more favorable than Jeffersonville Bancorp.

Dividends

Jeffersonville Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Jeffersonville Bancorp pays out 25.8% 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. CF Bankshares has increased its dividend for 4 consecutive years.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jeffersonville Bancorp	$34.24 million	3.39	$12.55 million	$3.10	8.85
CF Bankshares	$125.92 million	1.45	$17.54 million	$2.78	10.26

CF Bankshares has higher revenue and earnings than Jeffersonville Bancorp. Jeffersonville 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.

Risk and Volatility

Jeffersonville Bancorp has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Institutional & Insider Ownership

41.1% of CF Bankshares shares are held by institutional investors. 8.4% of Jeffersonville Bancorp 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Jeffersonville Bancorp and CF Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jeffersonville Bancorp	36.66%	12.98%	1.96%
CF Bankshares	14.37%	9.86%	0.85%

Summary

CF Bankshares beats Jeffersonville Bancorp on 11 of the 17 factors compared between the two stocks.

About Jeffersonville Bancorp

Jeffersonville Bancorp operates as the bank holding company for Jeff Bank that provides community banking services to individuals, small businesses, and local municipal governments primarily in Sullivan County, New York. The company offers various deposit products, such as checking, money market, savings, and NOW, as well as demand and time deposits. It also offers commercial mortgage, farmland, construction, real estate, agricultural, residential mortgage, home equity, consumer, installment, and other consumer loans. The company was founded in 1913 and is based in Jeffersonville, New York.

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.