Reviewing CF Bankshares (NASDAQ:CFBK) and Nicolet Bankshares (NYSE:NIC)

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

Dividends

CF Bankshares pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Nicolet Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 1.1%. CF Bankshares pays out 12.3% of its earnings in the form of a dividend. Nicolet Bankshares pays out 15.4% 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 Nicolet Bankshares has raised its dividend for 2 consecutive years. CF Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CF Bankshares	10.72%	8.25%	0.65%
Nicolet Bankshares	23.83%	10.95%	1.41%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CF Bankshares	0	0	1	0	3.00
Nicolet Bankshares	0	3	1	0	2.25

CF Bankshares presently has a consensus price target of $29.00, suggesting a potential upside of 21.29%. Nicolet Bankshares has a consensus price target of $119.25, suggesting a potential downside of 0.94%. Given CF Bankshares’ stronger consensus rating and higher probable upside, equities analysts plainly believe CF Bankshares is more favorable than Nicolet Bankshares.

Institutional and Insider Ownership

41.1% of CF Bankshares shares are owned by institutional investors. Comparatively, 43.1% of Nicolet Bankshares shares are owned by institutional investors. 21.0% of CF Bankshares shares are owned by company insiders. Comparatively, 16.4% of Nicolet Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

CF Bankshares has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Nicolet Bankshares has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$52.47 million	2.38	$13.39 million	$2.27	10.53
Nicolet Bankshares	$356.32 million	5.09	$124.06 million	$8.29	14.52

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

Summary

Nicolet Bankshares beats CF Bankshares on 10 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 Nicolet Bankshares

Nicolet Bankshares, Inc. operates as the bank holding company for Nicolet National Bank that provides banking products and services for businesses and individuals in Wisconsin and Michigan. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien and junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, and remote deposit capture services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, and official bank checks, as well as facilitates crop insurance products. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. The company was incorporated in 2000 and is headquartered in Green Bay, Wisconsin.