TCF Financial (NYSE: TCF) and Cape Bancorp (NASDAQ:CBNJ) are both financials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Volatility & Risk
TCF Financial has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Cape Bancorp has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
TCF Financial pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Cape Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. TCF Financial pays out 26.5% of its earnings in the form of a dividend. Cape Bancorp pays out 43.5% 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.
Insider and Institutional Ownership
82.3% of TCF Financial shares are held by institutional investors. 2.5% of TCF Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for TCF Financial and Cape Bancorp, as reported by MarketBeat.
||Strong Buy Ratings
TCF Financial presently has a consensus price target of $19.00, indicating a potential downside of 8.39%. Given TCF Financial’s higher probable upside, equities analysts clearly believe TCF Financial is more favorable than Cape Bancorp.
Earnings and Valuation
This table compares TCF Financial and Cape Bancorp’s revenue, earnings per share and valuation.
||Earnings Per Share
TCF Financial has higher revenue and earnings than Cape Bancorp. Cape Bancorp is trading at a lower price-to-earnings ratio than TCF Financial, indicating that it is currently the more affordable of the two stocks.
This table compares TCF Financial and Cape Bancorp’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
TCF Financial beats Cape Bancorp on 11 of the 12 factors compared between the two stocks.
About TCF Financial
TCF Financial Corporation (TCF) is a bank holding company. The Company’s principal subsidiary is TCF National Bank (TCF Bank). The Company operates in three segments: Consumer Banking, Wholesale Banking and Enterprise Services. Consumer Banking comprises all of the Company’s consumer-facing businesses. The Consumer Banking segment includes retail banking, consumer real estate and auto finance. Wholesale Banking comprises commercial real estate and business lending, leasing and equipment finance and inventory finance. TCF’s consumer banking strategy is primarily to generate deposits to use for funding high credit quality secured loans and leases. Enterprise Services comprises corporate treasury, corporate functions and the Holding Company. As of December 31, 2016, the Company’s total securities available for sale were $1.4 billion. As of December 31, 2016, the Company’s total loans were $17.8 billion. As of December 31, 2016, the Company’s total deposits were $17.2 billion.
About Cape Bancorp
Cape Bancorp, Inc. (Cape Bancorp) is the holding company of Cape Bank (the Bank). The Bank focuses on providing deposit and loan products to retail customers and to small and mid-sized businesses from its fourteen full service branch offices, located in Atlantic and Cape May Counties, one drive-up teller/ATM operation in Atlantic County, three market development offices (MDOs) located in Burlington, Cape May and Atlantic Counties in New Jersey, and two MDOs in Pennsylvania servicing the five county Philadelphia market located in Radnor, Delaware County and in Philadelphia. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, home equity loans and lines of credit (HELOC) and construction loans. Its retail and business banking deposit products include checking accounts, money market accounts, savings accounts, and certificates of deposit with terms ranging from 30 days to 60 months.
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