Critical Survey: BofI (BOFI) versus Its Competitors

BofI (NASDAQ: BOFI) is one of 306 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare BofI to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Risk & Volatility

BofI has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, BofI’s competitors have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares BofI and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BofI $455.42 million $134.74 million 15.11
BofI Competitors $5.59 billion $841.65 million 407.58

BofI’s competitors have higher revenue and earnings than BofI. BofI is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares BofI and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BofI 29.36% 17.00% 1.62%
BofI Competitors 18.61% 8.23% 0.93%

Analyst Recommendations

This is a summary of recent ratings for BofI and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BofI 0 1 3 0 2.75
BofI Competitors 2409 8697 8717 367 2.35

BofI currently has a consensus price target of $34.50, indicating a potential upside of 9.28%. As a group, “Banks” companies have a potential downside of 11.74%. Given BofI’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BofI is more favorable than its competitors.

Institutional and Insider Ownership

84.4% of BofI shares are held by institutional investors. Comparatively, 51.8% of shares of all “Banks” companies are held by institutional investors. 6.2% of BofI shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies 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.

Summary

BofI beats its competitors on 7 of the 13 factors compared.

About BofI

BofI Holding, Inc. (BofI) is the holding company for BofI Federal Bank (the Bank). The Bank is a diversified financial services company. The Bank provides consumer and business banking products through its branchless, low-cost distribution channels and affinity partners. The Bank has deposit and loan customers, including consumer and business checking, savings and time deposit accounts and financing for single family and multifamily residential properties, small-to-medium size businesses in target sectors, and selected specialty finance receivables. The Bank distributes its deposit products through a range of retail distribution channels, and its deposits consist of demand, savings and time deposits accounts. Its mortgage-backed securities consist primarily of mortgage pass-through securities issued by government-sponsored entities and non-agency collateralized mortgage obligations and pass-through mortgage-backed securities issued by private sponsors.

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