Broadway Financial (NASDAQ:BYFC) and TC Bancshares (NASDAQ:TCBC) Critical Comparison

TC Bancshares (NASDAQ:TCBC) and Broadway Financial (NASDAQ:BYFC) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Valuation and Earnings

This table compares TC Bancshares and Broadway Financial’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TC Bancshares	$21.97 million	2.66	$270,000.00	$0.06	225.33
Broadway Financial	$37.46 million	1.20	$5.64 million	$0.48	10.13

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

Institutional and Insider Ownership

23.6% of TC Bancshares shares are owned by institutional investors. Comparatively, 12.1% of Broadway Financial shares are owned by institutional investors. 9.6% of TC Bancshares shares are owned by company insiders. Comparatively, 1.8% of Broadway Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

TC Bancshares has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares TC Bancshares and Broadway Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TC Bancshares	1.21%	0.32%	0.06%
Broadway Financial	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for TC Bancshares and Broadway Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TC Bancshares	0	0	0	0	N/A
Broadway Financial	0	0	0	0	N/A

Summary

TC Bancshares beats Broadway Financial on 7 of the 11 factors compared between the two stocks.

About TC Bancshares

TC Bancshares, Inc. operates as the holding company for TC Federal Bank that provides various banking services for individual and commercial customers in the United States. It accepts various deposit products, including personal checking accounts, business checking accounts, savings accounts, money market accounts, and certificates of deposit. The company also offers lending products comprising single-family residential loans, home equity lines of credit, closed-end home equity loans, consumer loans, commercial and multi-family residential real estate loans, commercial and industrial loans, construction loans, land development loans, and SBA/USDA guaranteed loans. It operates branches in Thomasville, Georgia and Tallahassee, Florida, as well as loan production offices in Savannah, Georgia, and Jacksonville, Florida. The company was founded in 1934 and is based in Thomasville, Georgia.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.