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

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

Valuation & Earnings

This table compares QCR and C&F Financial’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QCR	$546.09 million	1.68	$113.56 million	$6.73	8.12
C&F Financial	$153.75 million	0.77	$23.60 million	$6.91	5.12

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.

Profitability

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

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

Institutional and Insider Ownership

70.0% of QCR shares are held by institutional investors. Comparatively, 37.2% of C&F Financial shares are held by institutional investors. 3.5% of QCR shares are held by company insiders. Comparatively, 6.3% of C&F Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. C&F Financial pays an annual dividend of $1.76 per share and has a dividend yield of 5.0%. QCR pays out 3.6% of its earnings in the form of a dividend. C&F Financial pays out 25.5% 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 raised 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.

Risk & Volatility

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

Analyst Recommendations

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

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

QCR currently has a consensus price target of $72.00, indicating a potential upside of 31.68%. Given QCR’s higher possible upside, analysts clearly 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 QCR

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.

About C&F Financial

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.