Capitol Federal Financial (NASDAQ: CFFN) and OceanFirst Financial (NASDAQ:OCFC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
74.6% of Capitol Federal Financial shares are held by institutional investors. Comparatively, 71.3% of OceanFirst Financial shares are held by institutional investors. 2.2% of Capitol Federal Financial shares are held by company insiders. Comparatively, 3.8% of OceanFirst Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Capitol Federal Financial and OceanFirst Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capitol Federal Financial||28.17%||6.59%||0.98%|
This is a breakdown of recent ratings for Capitol Federal Financial and OceanFirst Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capitol Federal Financial||0||2||0||0||2.00|
Capitol Federal Financial presently has a consensus price target of $13.75, suggesting a potential upside of 4.40%. OceanFirst Financial has a consensus price target of $32.80, suggesting a potential upside of 9.01%. Given OceanFirst Financial’s stronger consensus rating and higher probable upside, analysts plainly believe OceanFirst Financial is more favorable than Capitol Federal Financial.
Earnings & Valuation
This table compares Capitol Federal Financial and OceanFirst Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capitol Federal Financial||$335.38 million||5.43||$84.13 million||N/A||N/A|
|OceanFirst Financial||$215.90 million||6.71||$42.47 million||$1.70||17.70|
Capitol Federal Financial has higher revenue and earnings than OceanFirst Financial.
Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.6%. OceanFirst Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. OceanFirst Financial pays out 35.3% of its earnings in the form of a dividend.
Risk & Volatility
Capitol Federal Financial has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, OceanFirst Financial has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
OceanFirst Financial beats Capitol Federal Financial on 8 of the 15 factors compared between the two stocks.
About Capitol Federal Financial
Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products comprising savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposits. It also provides various loan products, such as one- to four-family residential real estate loans; construction-to-permanent loans; consumer loans comprising home equity loans and lines of credit, home improvement loans, auto loans, and loans secured by savings deposits; and commercial real estate loans consisting of various property types, including hotels, office and retail buildings, senior housing facilities, and multi-family dwellings located in Texas, Missouri, Kansas, Nebraska, Colorado, Arkansas, California, and Montana. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; and invests in various securities. It operates a network of 47 branches, which include 37 traditional branches and 10 in-store branches located in 9 counties throughout Kansas and 3 counties in Missouri. The company was founded in 1893 and is headquartered in Topeka, Kansas.
About OceanFirst Financial
OceanFirst Financial Corp. operates as the holding company for OceanFirst Bank N.A. that provides a range of community banking services. The company offers various deposit products to retail, government, and business customers, including money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits. It also provides commercial real estate, multi-family mortgage, and land loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; consumer loans, such as home equity loans and lines of credit, overdraft line of credit, loans on savings accounts, and other consumer loans; and commercial and industrial loans, and lines of credit. In addition, the company invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, it offers bankcard and wealth management services; and sells alternative investment products and life insurance products. The company operates through an administrative/branch office located in Toms River, New Jersey; and 45 additional branch offices and 3 deposit production facilities in central and southern New Jersey, as well as operates a wealth management office in Ocean County, and commercial loan production offices in the Philadelphia area and Atlantic, Cape May, and Mercer Counties in New Jersey. OceanFirst Financial Corp. was founded in 1902 and is based in Toms River, New Jersey.
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