Financial Comparison: C&F Financial (NASDAQ:CFFI) versus Chesapeake Financial Shares (OTCMKTS:CPKF)

Dividends

C&F Financial pays an annual dividend of $1.84 per share and has a dividend yield of 2.6%. Chesapeake Financial Shares pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. C&F Financial pays out 24.4% of its earnings in the form of a dividend. Chesapeake Financial Shares pays out 69.6% 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. C&F Financial has raised its dividend for 1 consecutive years.

Risk and Volatility

C&F Financial has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Insider and Institutional Ownership

37.2% of C&F Financial shares are owned by institutional investors. Comparatively, 3.7% of Chesapeake Financial Shares shares are owned by institutional investors. 6.3% of C&F Financial shares are owned by insiders. Comparatively, 39.5% of Chesapeake Financial Shares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares C&F Financial and Chesapeake Financial Shares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C&F Financial	13.67%	10.52%	0.94%
Chesapeake Financial Shares	4.57%	10.29%	0.74%

Earnings & Valuation

This table compares C&F Financial and Chesapeake Financial Shares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C&F Financial	$170.13 million	1.34	$19.83 million	$7.55	9.29
Chesapeake Financial Shares	$99.39 million	1.03	$11.43 million	$0.92	23.63

C&F Financial has higher revenue and earnings than Chesapeake Financial Shares. C&F Financial is trading at a lower price-to-earnings ratio than Chesapeake Financial Shares, indicating that it is currently the more affordable of the two stocks.

Summary

C&F Financial beats Chesapeake Financial Shares on 11 of the 14 factors compared between the two stocks.

About C&F Financial

C&F Financial Corp. is a bank holding company, which engages in the provision of banking services to individuals and businesses. It operates through the following segments: Community Banking, Mortgage Banking and Consumer Finance. The Community Banking segment provides checking and savings deposit accounts, business, real estate, development, mortgage, home equity, and installment loans. The Mortgage Banking segment offers ancillary mortgage loan origination services for loan settlement and residential appraisals. The Consumer Finance segment consists of automobile financing through lending programs that are designed to serve customers in the non-prime market who have limited access to traditional automobile financing. The company was founded on March 8, 1994 and is headquartered in Toano, VA.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.