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

Profitability

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

Net Margins Return on Equity Return on Assets
OptimumBank -22.12% -20.58% -1.01%
Central Federal 18.88% 14.23% 1.15%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OptimumBank $5.36 million 1.28 -$1.10 million N/A N/A
Central Federal $46.82 million 1.14 $9.60 million N/A N/A

Central Federal has higher revenue and earnings than OptimumBank.

Risk & Volatility

OptimumBank has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Central Federal has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for OptimumBank and Central Federal, as reported by MarketBeat.

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

Institutional and Insider Ownership

0.1% of OptimumBank shares are owned by institutional investors. Comparatively, 21.0% of Central Federal shares are owned by institutional investors. 13.7% of OptimumBank shares are owned by company insiders. Comparatively, 16.3% of Central Federal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Central Federal beats OptimumBank on 8 of the 10 factors compared between the two stocks.

OptimumBank Company Profile

OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides a range of consumer and commercial banking services to individuals and businesses. The company accepts demand interest-bearing and noninterest-bearing, savings, money market, NOW, and time deposit accounts, as well as certificates of deposit; and offers residential and commercial real estate, commercial, and consumer loans, as well as lending lines for working capital needs. It also provides debit and ATM cards; investment, cash management, and notary and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, drive-in tellers, and banking by mail, as well as Internet banking services. In addition, the company engages in holding, managing, and disposing foreclosed real estate. It operates through three banking offices located in Broward County, Florida. OptimumBank Holdings, Inc. was founded in 2000 and is based in Fort Lauderdale, Florida.

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.

Receive News & Ratings for OptimumBank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for OptimumBank and related companies with MarketBeat.com's FREE daily email newsletter.