Contrasting Brookline Bancorp (NASDAQ:BRKL) and Community First Bancshares (NASDAQ:CFBI)

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Community First Bancshares (NASDAQ:CFBI) and Brookline Bancorp (NASDAQ:BRKL) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for Community First Bancshares and Brookline Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community First Bancshares 0 0 0 0 N/A
Brookline Bancorp 0 3 1 0 2.25

Brookline Bancorp has a consensus target price of $17.50, suggesting a potential upside of 16.59%. Given Brookline Bancorp’s higher possible upside, analysts plainly believe Brookline Bancorp is more favorable than Community First Bancshares.

Volatility & Risk

Community First Bancshares has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, Brookline Bancorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Earnings and Valuation

This table compares Community First Bancshares and Brookline Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community First Bancshares $16.20 million 4.55 $440,000.00 N/A N/A
Brookline Bancorp $339.12 million 3.53 $83.06 million $1.07 14.03

Brookline Bancorp has higher revenue and earnings than Community First Bancshares.

Dividends

Brookline Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 2.9%. Community First Bancshares does not pay a dividend. Brookline Bancorp pays out 41.1% of its earnings in the form of a dividend.

Profitability

This table compares Community First Bancshares and Brookline Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community First Bancshares 8.07% 1.76% 0.44%
Brookline Bancorp 24.61% 9.78% 1.19%

Insider & Institutional Ownership

3.1% of Community First Bancshares shares are owned by institutional investors. Comparatively, 76.8% of Brookline Bancorp shares are owned by institutional investors. 1.3% of Community First Bancshares shares are owned by company insiders. Comparatively, 2.5% of Brookline Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Brookline Bancorp beats Community First Bancshares on 11 of the 13 factors compared between the two stocks.

About Community First Bancshares

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.

About Brookline Bancorp

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include non-interest-bearing demand checking accounts, NOW accounts, savings accounts, and money market accounts, as well as commercial, municipal, and retail deposits. The company's loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; financing for construction and development projects; home equity and other consumer loans; and commercial loans and leases to small and midsized businesses. It also provides term loans, letters of credit, cash management, investment advisory, and online and mobile banking services, as well as invests in debt and equity securities. As of December 31, 2018, the Company operated 51 full-service banking offices in greater Boston, the north shore of Massachusetts, and Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts.

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