Northpointe Bancshares (NYSE:NPB) versus TFS Financial (NASDAQ:TFSL) Financial Comparison

TFS Financial (NASDAQ:TFSL) and Northpointe Bancshares (NYSE:NPB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Earnings and Valuation

This table compares TFS Financial and Northpointe Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFS Financial	$791.96 million	6.32	$90.96 million	$0.33	54.06
Northpointe Bancshares	$471.18 million	1.38	$83.41 million	$2.22	8.49

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

Profitability

This table compares TFS Financial and Northpointe Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFS Financial	11.42%	4.89%	0.53%
Northpointe Bancshares	17.92%	14.80%	1.28%

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 6.3%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. TFS Financial pays out 342.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northpointe Bancshares pays out 4.5% of its earnings in the form of a dividend.

Insider & Institutional Ownership

9.8% of TFS Financial shares are held by institutional investors. 0.7% of TFS Financial shares are held by company insiders. Comparatively, 18.3% of Northpointe Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for TFS Financial and Northpointe Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFS Financial	0	3	1	0	2.25
Northpointe Bancshares	1	2	1	0	2.00

TFS Financial presently has a consensus price target of $15.50, suggesting a potential downside of 13.12%. Northpointe Bancshares has a consensus price target of $20.50, suggesting a potential upside of 8.73%. Given Northpointe Bancshares’ higher probable upside, analysts clearly believe Northpointe Bancshares is more favorable than TFS Financial.

About TFS Financial

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and multiple full-service branches and loan production offices located throughout the states of Ohio and Florida. TFS Financial Corporation was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.