Analyzing Richmond Mutual Bancorporation (NASDAQ:RMBI) and CF Bankshares (NASDAQ:CFBK)

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

Institutional & Insider Ownership

41.1% of CF Bankshares shares are owned by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 17.7% of CF Bankshares shares are owned by insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares CF Bankshares and Richmond Mutual Bancorporation”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$125.92 million	1.76	$17.54 million	$2.91	11.89
Richmond Mutual Bancorporation	$90.97 million	2.82	$11.58 million	$1.21	12.63

CF Bankshares has higher revenue and earnings than Richmond Mutual Bancorporation. CF Bankshares is trading at a lower price-to-earnings ratio than Richmond Mutual Bancorporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for CF Bankshares and Richmond Mutual Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CF Bankshares	0	0	2	0	3.00
Richmond Mutual Bancorporation	0	0	1	0	3.00

CF Bankshares currently has a consensus price target of $40.00, suggesting a potential upside of 15.61%. Given CF Bankshares’ higher probable upside, analysts plainly believe CF Bankshares is more favorable than Richmond Mutual Bancorporation.

Risk & Volatility

CF Bankshares has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Dividends

CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 3.9%. CF Bankshares pays out 12.4% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 49.6% 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. CF Bankshares has raised its dividend for 4 consecutive years and Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years.

Profitability

This table compares CF Bankshares and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CF Bankshares	15.10%	10.10%	0.88%
Richmond Mutual Bancorporation	13.00%	8.30%	0.79%

Summary

CF Bankshares beats Richmond Mutual Bancorporation on 13 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 Richmond Mutual Bancorporation

Richmond Mutual Bancorporation, Inc. operates as the bank holding company for First Bank Richmond that provides various banking services. It accepts various deposits, including savings deposit accounts, money market accounts, NOW and demand accounts, and certificates of deposit. The company also offers a range of lending products, such as multi-family and commercial real estate loans, commercial and industrial loans, construction and development loans, residential real estate loans, and consumer loans. In addition, it engages in the lease financing business; and provision of fee-based financial services comprising trust and estate administration, investment management, retirement plan administration, and private banking services. The company was founded in 1887 and is headquartered in Richmond, Indiana.