New York Community Bancorp (NYSE: NYCB) and Washington Federal (NASDAQ:WFSL) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for New York Community Bancorp and Washington Federal, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York Community Bancorp 2 8 0 0 1.80
Washington Federal 0 0 0 0 N/A

New York Community Bancorp currently has a consensus target price of $13.61, suggesting a potential upside of 9.74%. Given New York Community Bancorp’s higher possible upside, research analysts clearly believe New York Community Bancorp is more favorable than Washington Federal.

Profitability

This table compares New York Community Bancorp and Washington Federal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York Community Bancorp 25.67% 7.46% 0.94%
Washington Federal 36.00% 8.77% 1.18%

Dividends

New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 5.5%. Washington Federal does not pay a dividend. New York Community Bancorp pays out 73.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

57.5% of New York Community Bancorp shares are owned by institutional investors. 3.1% of New York Community Bancorp 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.

Valuation and Earnings

This table compares New York Community Bancorp and Washington Federal’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New York Community Bancorp $1.38 billion 4.39 $449.95 million $0.92 13.48
Washington Federal N/A N/A N/A N/A N/A

New York Community Bancorp has higher revenue and earnings than Washington Federal.

Summary

New York Community Bancorp beats Washington Federal on 5 of the 9 factors compared between the two stocks.

New York Community Bancorp Company Profile

New York Community Bancorp, Inc. is a multi-bank holding company. The Company operates through its subsidiaries, New York Community Bank (the Community Bank) and New York Commercial Bank (the Commercial Bank) (collectively, the Banks). The Company’s operations are divided into two segments: Banking Operations and Residential Mortgage Banking. The Banking Operations segment serves consumers and businesses by offering and servicing a range of loan and deposit products and other financial services. The Residential Mortgage Banking segment originates, aggregates, sells and services one- to four-family mortgage loans. Mortgage loan products consist of agency-conforming, fixed and adjustable-rate loans and, to a lesser extent, jumbo loans, for the purpose of purchasing or refinancing one- to four-family homes. The Community Bank is a chartered savings bank. As of December 31, 2016, the Community Bank had 225 branches operating through seven local divisions.

Washington Federal Company Profile

Washington Federal, Inc. is a bank holding company. The Company conducts its operations through a federally insured national bank subsidiary, Washington Federal, National Association (the Bank). The business of the Bank consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. As of September 30, 2016, Washington Federal had 238 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through its subsidiaries, the Company is also engaged in real estate investment and insurance brokerage activities. The Bank offers various consumer checking account products, both interest bearing and non-interest bearing, and business checking accounts.

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