NASB Financial (OTCMKTS:NASB) & OceanFirst Financial (NASDAQ:OCFC) Head-To-Head Survey

OceanFirst Financial (NASDAQ:OCFC) and NASB Financial (OTCMKTS:NASB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

OceanFirst Financial has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, NASB Financial has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Profitability

This table compares OceanFirst Financial and NASB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OceanFirst Financial	10.33%	5.14%	0.63%
NASB Financial	16.14%	6.84%	0.98%

Valuation and Earnings

This table compares OceanFirst Financial and NASB Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OceanFirst Financial	$687.16 million	1.62	$70.98 million	$1.16	16.67
NASB Financial	$178.01 million	1.58	$28.72 million	$4.03	9.67

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

Insider and Institutional Ownership

71.0% of OceanFirst Financial shares are held by institutional investors. 5.0% of OceanFirst Financial shares are held by insiders. Comparatively, 47.0% of NASB Financial shares are held by 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.

Dividends

OceanFirst Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.1%. NASB Financial pays an annual dividend of $1.40 per share and has a dividend yield of 3.6%. OceanFirst Financial pays out 69.0% of its earnings in the form of a dividend. NASB Financial pays out 34.7% 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for OceanFirst Financial and NASB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OceanFirst Financial	0	4	1	0	2.20
NASB Financial	0	0	0	0	0.00

OceanFirst Financial currently has a consensus target price of $21.33, indicating a potential upside of 10.31%. Given OceanFirst Financial’s stronger consensus rating and higher possible upside, research analysts clearly believe OceanFirst Financial is more favorable than NASB Financial.

Summary

OceanFirst Financial beats NASB Financial on 10 of the 16 factors compared between the two stocks.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits, that includes brokered deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, trust and asset management services; and bank owned life insurance products. The company was founded in 1902 and is based in Red Bank, New Jersey.

About NASB Financial

NASB Financial, Inc. operates as a unitary thrift holding company for North American Savings Bank, F.S.B. that provides various banking products and services in the United States. The company offers checking, savings, money market, and certificate of deposit accounts. It also mortgages and refinancing products, including conventional, veterans administration, federal housing administration, jumbo, and IRA residential real-estate loans. In addition, the company provides commercial real estate development and commercial loans, such as multifamily, retail, single-tenant, multi-tenant, office, industrial, and other loans; investment property loans; and construction and development loans. The company was founded in 1927 and is based in Grandview, Missouri.