C&F Financial (NASDAQ:CFFI) versus QCR (NASDAQ:QCRH) Head to Head Review

C&F Financial (NASDAQ:CFFIGet Free Report) and QCR (NASDAQ:QCRHGet Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Risk & Volatility

C&F Financial has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
C&F Financial 15.56% 11.51% 0.98%
QCR 20.80% 13.78% 1.38%

Earnings & Valuation

This table compares C&F Financial and QCR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
C&F Financial $153.75 million 0.81 $23.60 million $6.91 5.35
QCR $343.22 million 2.81 $113.56 million $6.73 8.52

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

Insider and Institutional Ownership

37.2% of C&F Financial shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 6.3% of C&F Financial shares are owned by insiders. Comparatively, 3.5% of QCR shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

C&F Financial pays an annual dividend of $1.76 per share and has a dividend yield of 4.8%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. C&F Financial pays out 25.5% of its earnings in the form of a dividend. QCR pays out 3.6% 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 increased its dividend for 12 consecutive years. C&F Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for C&F Financial and QCR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
C&F Financial 0 0 0 0 N/A
QCR 0 0 3 0 3.00

QCR has a consensus target price of $72.00, suggesting a potential upside of 25.52%. Given QCR’s higher probable upside, analysts plainly believe QCR is more favorable than C&F Financial.

Summary

QCR beats C&F Financial on 12 of the 16 factors compared between the two stocks.

About C&F Financial

(Get Free Report)

C&F Financial Corporation operates as a bank holding company for Citizens and Farmers Bank that provides banking services to individuals and businesses. It operates through three segments: Community Banking, Mortgage Banking, and Consumer Finance. The Community Banking segment offers various banking services, including checking and savings deposit accounts, as well as business, real estate, development, mortgage, home equity, and installment loans. This segment also provides ATMs, Internet and mobile banking, peer-to-peer payment capabilities, and debit cards, as well as safe deposit box rentals, notary public, electronic transfer, and other customary bank services. The Mortgage Banking segment provides various residential mortgage loans; originates conventional mortgage loans, mortgage loans insured by the Federal Housing Administration, and mortgage loans guaranteed by the United States Department of Agriculture and the Veterans Administration; and ancillary mortgage loan production services to third parties for residential appraisals, as well as various mortgage origination activities. The Consumer Finance segment provides automobile loans. It also offers brokerage and wealth management services, and insurance products and services, as well as title and settlement agency. C&F Financial Corporation was founded in 1927 and is headquartered in Toano, Virginia.

About QCR

(Get Free Report)

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company's deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company's loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

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