First Defiance Financial (NASDAQ:FDEF) and Community First Bancshares (NASDAQ:CFBI) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Valuation and Earnings
This table compares First Defiance Financial and Community First Bancshares’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Defiance Financial||$163.93 million||3.60||$46.25 million||$2.23||13.41|
|Community First Bancshares||$16.20 million||5.23||$440,000.00||N/A||N/A|
First Defiance Financial has higher revenue and earnings than Community First Bancshares.
First Defiance Financial pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Community First Bancshares does not pay a dividend. First Defiance Financial pays out 39.5% of its earnings in the form of a dividend.
Insider and Institutional Ownership
65.4% of First Defiance Financial shares are held by institutional investors. Comparatively, 4.8% of Community First Bancshares shares are held by institutional investors. 2.4% of First Defiance Financial shares are held by insiders. Comparatively, 1.3% of Community First Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares First Defiance Financial and Community First Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Defiance Financial||27.21%||12.03%||1.50%|
|Community First Bancshares||1.14%||0.24%||0.06%|
This is a summary of recent recommendations for First Defiance Financial and Community First Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Defiance Financial||0||0||2||0||3.00|
|Community First Bancshares||0||0||0||0||N/A|
First Defiance Financial presently has a consensus price target of $33.00, indicating a potential upside of 10.37%. Given First Defiance Financial’s higher probable upside, equities analysts plainly believe First Defiance Financial is more favorable than Community First Bancshares.
Volatility and Risk
First Defiance Financial has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Community First Bancshares has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.
First Defiance Financial beats Community First Bancshares on 11 of the 14 factors compared between the two stocks.
First Defiance Financial Company Profile
First Defiance Financial Corp. operates as a unitary thrift holding company that provides community-based financial services in northwest Ohio, northeast Indiana, and southeastern Michigan. It offers checking accounts, money market accounts, savings accounts, term certificate accounts, demand deposits, and certificates of deposits, as well as certificate of deposit account registry service; and commercial real estate, commercial, consumer finance, 1-4 family residential real estate, construction, and home equity and improvement loans. The company also provides trust and wealth management, and online banking services. In addition, it sells various property and casualty, group health and life, and individual health and life insurance products. The company operates through 44 full service banking centers and 1 loan production office. First Defiance Financial Corp. was incorporated in 1995 and is headquartered in Defiance, Ohio.
Community First Bancshares Company Profile
Community First Bancshares, Inc. operates as the holding company for Newton Federal Bank that provides various banking products and services in the United States. The company offers various deposit accounts, including checking accounts, savings accounts, and certificate of deposit accounts. It also provides one-to four-family residential real estate loans, commercial real estate loans, commercial and industrial loans, construction and land loans, indirect automobile loans, and consumer loans, as well as multi-family residential real estate loans, and home equity loans and lines of credit. In addition, the company invests in securities; and offers money transfer and other banking services. It operates through its main and branch office in Covington, Georgia; and loan production offices in Watkinsville and Braselton, Georgia. The company was founded in 1928 and is headquartered in Covington, Georgia. Community First Bancshares, Inc. is a subsidiary of Community First Bancshares, MHC.
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