United Community Financial Corp. (UCFC) & BofI Holding (BOFI) Head-To-Head Analysis

BofI Holding (NASDAQ: BOFI) and United Community Financial Corp. (NASDAQ:UCFC) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Volatility and Risk

BofI Holding has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, United Community Financial Corp. has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Institutional & Insider Ownership

88.3% of BofI Holding shares are owned by institutional investors. Comparatively, 58.2% of United Community Financial Corp. shares are owned by institutional investors. 6.2% of BofI Holding shares are owned by company insiders. Comparatively, 3.6% of United Community Financial Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for BofI Holding and United Community Financial Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BofI Holding 0 1 4 0 2.80
United Community Financial Corp. 1 1 1 0 2.00

BofI Holding currently has a consensus price target of $33.60, suggesting a potential upside of 28.78%. United Community Financial Corp. has a consensus price target of $10.50, suggesting a potential upside of 10.41%. Given BofI Holding’s stronger consensus rating and higher possible upside, analysts clearly believe BofI Holding is more favorable than United Community Financial Corp..

Profitability

This table compares BofI Holding and United Community Financial Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BofI Holding 29.36% 17.38% 1.63%
United Community Financial Corp. 20.00% 9.66% 1.08%

Valuation and Earnings

This table compares BofI Holding and United Community Financial Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BofI Holding $370.30 million 4.48 $135.48 million $2.13 12.25
United Community Financial Corp. $97.61 million 4.84 $22.37 million $0.45 21.13

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

Dividends

United Community Financial Corp. pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. BofI Holding does not pay a dividend. United Community Financial Corp. pays out 35.6% of its earnings in the form of a dividend.

Summary

BofI Holding beats United Community Financial Corp. on 12 of the 16 factors compared between the two stocks.

BofI Holding Company Profile

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.

United Community Financial Corp. Company Profile

United Community Financial Corp. is financial services holding company. The Company’s subsidiaries include The Home Savings and Loan Company of Youngstown, Ohio (Home Savings or the Bank), HSB Insurance, LLC and HSB Capital, LLC. The principal business of Home Savings is the origination of mortgage loans, including construction loans, on residential and nonresidential real estate located in Home Savings’ primary market area. In addition to real estate lending, Home Savings originates commercial loans and various types of consumer loans. Funds for lending and other investment activities are obtained primarily from retail deposits. HSB Insurance, LLC is an insurance agency that offers a range of insurance products for business and residential customers, which include, auto, homeowners, life-health, commercial, surety bonds and aviation. HSB Capital, LLC provides mezzanine funding for customers. Mezzanine loans are offered to customers in United Community’s market area.

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