Reviewing CF Bankshares (NASDAQ:CFBK) & Banco Comercial Portugues (OTCMKTS:BPCGY)

Banco Comercial Portugues (OTCMKTS:BPCGY) and CF Bankshares (NASDAQ:CFBK) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Banco Comercial Portugues and CF Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Comercial Portugues	0	0	0	2	4.00
CF Bankshares	0	0	2	0	3.00

CF Bankshares has a consensus target price of $40.00, indicating a potential upside of 13.67%. Given CF Bankshares’ higher probable upside, analysts clearly believe CF Bankshares is more favorable than Banco Comercial Portugues.

Profitability

This table compares Banco Comercial Portugues and CF Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Comercial Portugues	N/A	N/A	N/A
CF Bankshares	18.08%	11.92%	1.05%

Volatility & Risk

Banco Comercial Portugues has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, CF Bankshares has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Dividends

Banco Comercial Portugues pays an annual dividend of $0.19 per share and has a dividend yield of 1.4%. CF Bankshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Banco Comercial Portugues pays out 20.9% of its earnings in the form of a dividend. CF Bankshares pays out 10.4% 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.

Institutional & Insider Ownership

41.1% of CF Bankshares shares are held by institutional investors. 17.7% of CF Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Banco Comercial Portugues and CF Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Comercial Portugues	$5.82 billion	3.35	$980.79 million	$0.91	14.47
CF Bankshares	$125.92 million	1.79	$17.54 million	$3.46	10.17

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

Summary

CF Bankshares beats Banco Comercial Portugues on 11 of the 18 factors compared between the two stocks.

About Banco Comercial Portugues

Banco Comercial Português, commonly known as Millennium bcp, is a Portuguese banking group serving individuals, businesses and institutional clients. Its services include deposit accounts, consumer and mortgage lending, payment cards, money transfers, investment and wealth management, and corporate and investment banking. Founded in 1985, the group operates primarily in Portugal. Its international activities include Poland, where it operates through Bank Millennium, and Mozambique, where it has a stake in Banco Comercial e de Investimentos.

About CF Bankshares

CF Bankshares Inc. is the bank holding company for CFBank, a community-focused financial institution headquartered in Columbus, Ohio. CFBank provides banking services to individuals, families, businesses and professional clients through its branch network and digital banking channels. The bank’s offerings include checking and savings accounts, certificates of deposit, residential mortgages, home equity financing, consumer loans and commercial lending. It also provides business banking services such as commercial real estate and construction loans, treasury management, deposit services and other financing solutions for small and middle-market businesses.