Review City (NASDAQ:CHCO) and Bank First (NASDAQ:BFC)

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City (NASDAQ:CHCO – Get Rating) and Bank First (NASDAQ:BFC – Get Rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on their dividend strength, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Institutional and insider ownership

64.1% of City shares are held by institutional investors. By comparison, 26.3% of Bank First’s shares are held by institutional investors. 2.6% of City shares are held by company insiders. By comparison, 7.6% of Bank First shares are held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Volatility and risk

City has a beta of 0.56, which means its stock price is 44% less volatile than the S&P 500. In comparison, Bank First has a beta of 0.35, which means its stock price is 65% less volatile than the S&P 500.

Dividends

City pays an annual dividend of $2.40 per share and has a dividend yield of 2.9%. Bank First pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. City pays 41.2% of its profits as a dividend. Bank First pays 15.3% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. City has increased its dividend for 9 consecutive years and Bank First has increased its dividend for 2 consecutive years. City is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations for City and Bank First, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Town 0 0 0 0 N / A
Bank first 0 0 1 0 3.00

Bank First has a consensus price target of $84.00, suggesting a potential upside of 15.10%. Given Bank First’s possible higher upside, analysts clearly believe that Bank First is more favorable than City.

Benefits and evaluation

This table compares revenue, earnings per share and valuation of City and Bank First.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Town $235.11 million 5.23 $88.08 million $5.83 14.11
Bank first $121.90 million 4.51 $45.44 million $5.76 12.67

City has higher revenue and profit than Bank First. Bank First trades at a lower price-to-earnings ratio than City, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of City and Bank First.

Net margins Return on equity return on assets
Town 38.11% 13.31% 1.50%
Bank first 36.55% 13.94% 1.54%

Summary

City beat Bank First on 10 of the 16 factors compared between the two stocks.

About the city (Get an assessment)

City Holding Company operates as a holding company for City National Bank of West Virginia which provides various banking, trust and investment management, and other financial solutions in the United States. The company offers checking, savings and money market accounts, as well as certificates of deposit and individual retirement accounts. It also grants commercial and industrial loans, which consist of loans to companies and other corporate borrowers, mainly in small and medium-sized industrial and commercial enterprises; commercial real estate loans including commercial mortgages, which are secured by non-residential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinancing of a residence; first priority home equity loans; consumer loans secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit and other personal property; and overdrafts on sight accounts. In addition, the Company offers mortgage banking services, including fixed and adjustable rate mortgages, construction financing, land lending, conventional and government insured mortgage origination, secondary marketing and service. Mortgages. Additionally, it provides custodial services for business customers including cash management, safe deposit box and other cash management services; merchant credit card services; wealth management, trust, investment and custodial services for commercial and retail clients; and corporate trust and institutional custodial, financial and estate planning, and retirement plan services, as well as automated banking machines, interactive banking machines, mobile banking, interactive voice response systems, and credit and debit cards. The company operates through a network of 94 branch offices and 905 full-time equivalent associates in West Virginia, Virginia, Kentucky and Ohio. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

About Bank First (Get an assessment)

Bank First Corporation operates as a holding company for Bank First NA which provides consumer and commercial financial services to Wisconsin businesses, professionals, consumers, associations, individuals and government authorities. The company offers checking, savings, money market, cash management, retirement and health savings accounts; other term deposits; certificates of deposit; and residential mortgage products. It also provides credit cards; ATM processing; Insurance; data processing and other information technologies; investment and custody; finance management; and online, telephone and mobile banking. The Company’s lending products include real estate loans, including commercial real estate loans, residential mortgages and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing and other business purposes; construction and development loans; residential loans for 1 to 4 families; and consumer loans for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. It operates through 21 offices in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Waupaca, Ozaukee, Monroe and Jefferson counties in Wisconsin. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.



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