Reviewing TowneBank (NASDAQ:TOWN) & C&F Financial (NASDAQ:CFFI)

TowneBank (NASDAQ:TOWN) and C&F Financial (NASDAQ:CFFI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.


TowneBank pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. C&F Financial pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. TowneBank pays out 36.4% of its earnings in the form of a dividend. TowneBank has raised its dividend for 7 consecutive years and C&F Financial has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent ratings for TowneBank and C&F Financial, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TowneBank 0 3 0 0 2.00
C&F Financial 0 0 0 0 N/A

TowneBank currently has a consensus target price of $27.50, suggesting a potential downside of 1.93%. Given TowneBank’s higher possible upside, analysts plainly believe TowneBank is more favorable than C&F Financial.


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

Net Margins Return on Equity Return on Assets
TowneBank 21.05% 8.81% 1.20%
C&F Financial 14.92% 12.00% 1.20%

Institutional and Insider Ownership

47.8% of TowneBank shares are owned by institutional investors. Comparatively, 35.6% of C&F Financial shares are owned by institutional investors. 6.0% of C&F Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

TowneBank has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, C&F Financial has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TowneBank $613.42 million 3.32 $133.79 million $1.98 14.16
C&F Financial $118.31 million 1.51 $18.02 million N/A N/A

TowneBank has higher revenue and earnings than C&F Financial.


TowneBank beats C&F Financial on 8 of the 12 factors compared between the two stocks.

About TowneBank

TowneBank provides retail and commercial banking services for small- and medium-size businesses, professionals, and individuals. The company operates in three segments: Banking, Realty, and Insurance. It accepts various deposits products, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts, and negotiable order of withdrawal accounts. The company also offers secured and unsecured personal loans for financing automobiles, home improvements, education, and personal investments; commercial loans for working capital, business expansion, and equipment and machinery purchases; and mortgage loans, as well as real estate acquisition, development, and construction loans. In addition, it provides other services, such as safe deposit boxes, cash management services, direct deposit of payroll and social security checks, and automatic drafts for various accounts, as well as Internet, mobile, and on-call banking services. Further, the company offers documentation services to accomplish tax deferral to investors; investment and asset management services; commercial mortgage brokerage services; and other financial services, such as financial, retirement, and estate planning services, as well as assistance on various investment options, such as alternative investments, annuities, margin accounts, convertible bonds, and pension and profit sharing plans. Additionally, it provides residential real estate, relocation, property management, vacations rental, and title and settlement services; and originates residential mortgage loans. The company offers life, property, casualty, travel, and vehicle insurance services; medical, and baggage protection insurance for travelers; and employee benefit programs, such as medical, dental, vision, and disability insurance. As of February 27, 2019, it operated 41 banking offices in Virginia and North Carolina. TowneBank was founded in 1998 and is based in Portsmouth, Virginia.

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. The company's Retail Banking offers various banking services, including checking and savings deposit accounts, as well as business, real estate, development, mortgage, home equity, and installment loans. It also provides ATMs, Internet and mobile banking, and debit and credit cards, as well as safe deposit box rentals, notary public, electronic transfer, and other customary bank services. This segment offers its services through its main office in West Point, Virginia, as well as through 25 Virginia branches located 1 each in Cartersville, Charlottesville, Chester, Cumberland, Hampton, Mechanicsville, Newport News, Norge, Powhatan, Providence Forge, Quinton, Saluda, Sandston, West Point, and Yorktown; 2 in Williamsburg; 4 in Richmond; and 4 in Midlothian. The company's 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 origination services for residential appraisals, as well as various mortgage origination functions to third parties. It provides mortgage loan origination services through 11 offices in Virginia, 2 offices in Maryland, and 2 offices in North Carolina, as well as through 1 each in South Carolina and West Virginia. The company's Consumer Finance segment provides automobile loans through its offices in Richmond and Hampton, Virginia; and Nashville, Tennessee. Its Other segment offers brokerage and wealth management services; and insurance products. The company also provides title and settlement agency, and insurance services. C&F Financial Corporation was founded in 1927 and is headquartered in West Point, Virginia.

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