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

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

Dividends

CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Jeffersonville Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. CF Bankshares pays out 12.9% of its earnings in the form of a dividend. Jeffersonville Bancorp pays out 25.8% 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.

Analyst Ratings

This is a summary of recent ratings and price targets for CF Bankshares and Jeffersonville Bancorp, as provided by MarketBeat.

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

CF Bankshares presently has a consensus target price of $33.50, suggesting a potential upside of 16.16%. Given CF Bankshares’ stronger consensus rating and higher possible upside, equities analysts clearly believe CF Bankshares is more favorable than Jeffersonville Bancorp.

Risk & Volatility

CF Bankshares has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Jeffersonville Bancorp has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Institutional and Insider Ownership

41.1% of CF Bankshares shares are owned by institutional investors. 17.7% of CF Bankshares shares are owned by insiders. Comparatively, 8.4% of Jeffersonville Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$60.85 million	3.04	$17.54 million	$2.78	10.37
Jeffersonville Bancorp	$34.24 million	3.46	$12.55 million	$3.10	9.03

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.

Summary

CF Bankshares beats Jeffersonville Bancorp on 11 of the 17 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 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.