Reviewing Quaint Oak Bancorp (OTCMKTS:QNTO) and CF Bankshares (NASDAQ:CFBK)

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

Dividends

Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. CF Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Quaint Oak Bancorp pays out 21.1% of its earnings in the form of a dividend. CF Bankshares pays out 11.5% 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 increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Quaint Oak Bancorp and CF Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaint Oak Bancorp	0	0	0	0	0.00
CF Bankshares	0	0	1	0	3.00

CF Bankshares has a consensus target price of $29.00, suggesting a potential upside of 17.98%. Given CF Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe CF Bankshares is more favorable than Quaint Oak Bancorp.

Institutional & Insider Ownership

8.6% of Quaint Oak Bancorp shares are held by institutional investors. Comparatively, 41.1% of CF Bankshares shares are held by institutional investors. 31.3% of Quaint Oak Bancorp shares are held by insiders. Comparatively, 21.0% of CF Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Quaint Oak Bancorp has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaint Oak Bancorp	$51.59 million	0.52	$2.80 million	$0.76	13.29
CF Bankshares	$123.56 million	1.15	$13.39 million	$2.78	8.84

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quaint Oak Bancorp	4.06%	3.86%	0.30%
CF Bankshares	14.20%	10.44%	0.85%

Summary

CF Bankshares beats Quaint Oak Bancorp on 14 of the 17 factors compared between the two stocks.

About Quaint Oak Bancorp

Quaint Oak Bancorp, Inc. operates as the holding company for Quaint Oak Bank that provides banking products and services in Pennsylvania. It offers various deposit products, including money market accounts, certificates of deposit, interest and non-interest-bearing checking accounts for businesses and consumers, and savings accounts. The company also provides residential and commercial mortgage loans, construction loans, commercial business loans, home equity loans, and lines of credit; mortgage banking, real estate sales, title abstract, and insurance services; and multi-state equipment financing services. It serves its customers through offices, as well as correspondence, telephone, and online banking. Quaint Oak Bancorp, Inc. was incorporated in 1926 and is headquartered in Southampton, Pennsylvania.

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.