Clifton Bancorp (NASDAQ: CSBK) and Investors Bancorp (NASDAQ:ISBC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitabiliy, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

Clifton Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Investors Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. Clifton Bancorp pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Investors Bancorp pays out 50.0% of its earnings in the form of a dividend. Investors Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Clifton Bancorp and Investors Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Clifton Bancorp $28.59 million 12.84 $4.74 million $0.22 77.41
Investors Bancorp $672.19 million 5.85 $190.52 million $0.64 20.64

Investors Bancorp has higher revenue and earnings than Clifton Bancorp. Investors Bancorp is trading at a lower price-to-earnings ratio than Clifton Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Clifton Bancorp and Investors Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clifton Bancorp 0 1 0 0 2.00
Investors Bancorp 1 1 3 0 2.40

Clifton Bancorp currently has a consensus price target of $17.00, indicating a potential downside of 0.18%. Investors Bancorp has a consensus price target of $14.50, indicating a potential upside of 9.77%. Given Investors Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Investors Bancorp is more favorable than Clifton Bancorp.

Profitability

This table compares Clifton Bancorp and Investors Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clifton Bancorp 10.93% 1.53% 0.34%
Investors Bancorp 21.92% 5.95% 0.82%

Insider and Institutional Ownership

62.7% of Clifton Bancorp shares are owned by institutional investors. Comparatively, 76.1% of Investors Bancorp shares are owned by institutional investors. 6.3% of Clifton Bancorp shares are owned by company insiders. Comparatively, 3.0% of Investors Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Clifton Bancorp has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Investors Bancorp has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Summary

Investors Bancorp beats Clifton Bancorp on 13 of the 16 factors compared between the two stocks.

Clifton Bancorp Company Profile

Clifton Bancorp Inc, formerly Clifton Savings Bancorp, Inc., is a savings and loan holding company that operates through its subsidiary, Clifton Savings Bank (Clifton Savings). Clifton Savings is a federally chartered savings bank. Clifton Savings operate as a community-oriented financial institution offering traditional financial services to consumers and businesses in the market area. It attracts deposits from the general public and uses those funds to originate one- to four-family, multi-family and commercial real estate, and consumer loans, which it holds for investment. Clifton Savings has one wholly owned subsidiary, Botany Inc., an investment company. In addition to the main office located in Passaic County, Clifton Savings operates 11 branch offices in Bergen and Passaic Counties, which, along with Essex, Morris, Hudson and Union Counties are its primary market area.

Investors Bancorp Company Profile

Investors Bancorp, Inc. is a holding company for Investors Bank (the Bank). The Bank is a chartered savings bank. The Company is in the business of attracting deposits from the public through its branch network and borrowing funds in the wholesale markets to originate loans and to invest in securities. It originates mortgage loans secured by one-to four-family residential real estate loans, multi-family loans, commercial real estate loans, construction loans, commercial and industrial loans and consumer loans, the majority of which are home equity loans and home equity lines of credit. Securities, primarily United States Government and Federal Agency obligations, mortgage-backed and other securities represented 12.3% of its assets as of December 31, 2012. In December 2013, Investors Bancorp Inc completed its acquisition of Roma Financial Corp, and its subsidiary banks, Roma Bank and RomAsia Bank. In January 2014, Investors Bancorp Inc acquired Gateway Community Financial Corp.

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