Meta Financial Group (NASDAQ: CASH) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitabiliy, valuation and risk.

Dividends

Meta Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.4%. Meta Financial Group pays out 9.8% of its earnings in the form of a dividend. Capitol Federal Financial pays out 54.8% 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.

Volatility & Risk

Meta Financial Group has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

73.8% of Meta Financial Group shares are held by institutional investors. Comparatively, 76.5% of Capitol Federal Financial shares are held by institutional investors. 6.1% of Meta Financial Group shares are held by insiders. Comparatively, 2.5% of Capitol Federal Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Meta Financial Group and Capitol Federal Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meta Financial Group 0 0 2 0 3.00
Capitol Federal Financial 0 2 0 0 2.00

Meta Financial Group currently has a consensus target price of $125.50, suggesting a potential upside of 36.93%. Capitol Federal Financial has a consensus target price of $15.00, suggesting a potential upside of 4.17%. Given Meta Financial Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Meta Financial Group is more favorable than Capitol Federal Financial.

Profitability

This table compares Meta Financial Group and Capitol Federal Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meta Financial Group 19.51% 16.92% 1.60%
Capitol Federal Financial 25.58% 6.04% 0.90%

Earnings & Valuation

This table compares Meta Financial Group and Capitol Federal Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meta Financial Group $226.03 million 3.79 $49.55 million $5.30 17.29
Capitol Federal Financial $214.73 million 9.00 $83.20 million $0.62 23.23

Capitol Federal Financial has higher revenue, but lower earnings than Meta Financial Group. Meta Financial Group is trading at a lower price-to-earnings ratio than Capitol Federal Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Meta Financial Group beats Capitol Federal Financial on 10 of the 16 factors compared between the two stocks.

About Meta Financial Group

Meta Financial Group, Inc. is a unitary savings and loan holding company. The Company operates through its banking subsidiary, MetaBank (the Bank). Its segments include Payments, Banking, and Corporate Services/Other. MetaBank is both a community-oriented financial institution offering a range of financial services to meet the needs of the communities it serves and a payments company providing services on a nationwide basis. It operates in both the banking and payments industries through MetaBank, its retail banking operation; Meta Payment Systems (MPS), its electronic payments division; AFS/IBEX Financial Services Inc. (AFS/IBEX), its insurance premium financing division, and Refund Advantage, EPS Financial, LLC (EPS) Financial and Specialty Consumer Services, its tax-related financial solutions divisions.

About Capitol Federal Financial

Capitol Federal Financial, Inc. is the savings and loan holding company. The Company provides a range of retail banking services, through its subsidiary, Capitol Federal Savings Bank (the Bank), a federal savings bank that serves primarily the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia and Salina, Kansas and portions of the metropolitan area of greater Kansas City. The Company attracts retail deposits from the general public and invests those funds primarily in permanent loans secured by first mortgages on owner-occupied, one- to four-family residences. In addition to providing full service banking offices, it provides its customers mobile banking, telephone banking and bill payment services, and online banking and bill payment services. Its primary lending business is originating and purchasing loans secured by one- to four-family residential properties, which results in a loan concentration in residential first mortgage loans located in Kansas and Missouri.

Receive News & Ratings for Meta Financial Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Meta Financial Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.