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

Valuation & Earnings

This table compares Central Federal and Cortland Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Central Federal $27.60 million 1.96 $4.27 million N/A N/A
Cortland Bancorp $33.46 million 2.99 $8.84 million N/A N/A

Cortland Bancorp has higher revenue and earnings than Central Federal.

Risk and Volatility

Central Federal has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Cortland Bancorp has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Institutional & Insider Ownership

23.9% of Central Federal shares are owned by institutional investors. Comparatively, 1.6% of Cortland Bancorp shares are owned by institutional investors. 18.6% of Central Federal shares are owned by company insiders. Comparatively, 9.5% of Cortland Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Central Federal and Cortland Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central Federal 16.31% 11.52% 0.81%
Cortland Bancorp 26.40% 14.41% 1.32%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Central Federal and Cortland Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central Federal 0 0 0 0 N/A
Cortland Bancorp 0 0 0 0 N/A

Dividends

Cortland Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.9%. Central Federal does not pay a dividend.

Summary

Cortland Bancorp beats Central Federal on 7 of the 11 factors compared between the two stocks.

Central Federal Company Profile

Central Federal Corporation 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, and money market accounts, as well as certificates of deposit. It also offers single-family mortgage loans; commercial real estate and multi-family residential mortgage loans; commercial loans; construction and land loans; and consumer loans, such as home equity lines of credit, automobile loans, home improvement loans, and loans secured by deposits, as well as other loans. In addition, the company provides Internet and mobile banking, remote deposit, and corporate treasury management services. As of December 31, 2018, it operated five branch offices located in Franklin, Hamilton, Summit, and Columbiana Counties; and a loan production office located in Franklin County; and an agency office located in Cuyahoga County, Ohio. Central Federal Corporation was founded in 1892 and is based in Worthington, Ohio.

Cortland Bancorp Company Profile

Cortland Bancorp operates as the bank holding company for The Cortland Savings and Banking Company that provides commercial and retail banking services in Northeastern Ohio and Western Pennsylvania. Its deposit products include demand deposits, savings, money market, time deposit, and checking accounts. The company's loan portfolio comprises commercial loans consisting of commercial, financial loans, real estate construction and development loans, commercial real estate loans, small business lending, and trade financing; and consumer loans, such as residential real estate, home equity, and installment loans. It also provides brokerage and investment services; asset management services; night depository services, automated teller services, safe deposit boxes, and other services; and Internet and mobile banking options. As of February 4, 2019, it operated through 14 offices located in the Summit, Trumbull, Mahoning, Portage, and Ashtabula counties in Northeast Ohio. The company was founded in 1892 and is headquartered in Cortland, Ohio.

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