Reviewing Parke Bancorp (NASDAQ:PKBK) and CF Bankshares (NASDAQ:CFBK)

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

Dividends

CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. CF Bankshares pays out 12.4% of its earnings in the form of a dividend. Parke Bancorp pays out 20.8% 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.

Risk and Volatility

CF Bankshares has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Valuation & Earnings

This table compares CF Bankshares and Parke Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$61.81 million	3.54	$17.54 million	$2.91	11.73
Parke Bancorp	$90.62 million	4.33	$37.78 million	$3.84	8.69

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

Profitability

This table compares CF Bankshares and Parke Bancorp’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%
Parke Bancorp	29.99%	13.88%	2.05%

Analyst Recommendations

This is a breakdown of current ratings and price targets for CF Bankshares and Parke Bancorp, as reported by MarketBeat.com.

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

CF Bankshares currently has a consensus target price of $40.00, indicating a potential upside of 17.20%. Given CF Bankshares’ higher possible upside, analysts clearly believe CF Bankshares is more favorable than Parke Bancorp.

Insider and Institutional Ownership

41.1% of CF Bankshares shares are owned by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are owned by institutional investors. 17.7% of CF Bankshares 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 stock is poised for long-term growth.

Summary

Parke Bancorp beats CF Bankshares 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 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.