Head-To-Head Comparison: Capitol Federal Financial (NASDAQ:CFFN) vs. Its Competitors

Capitol Federal Financial (NASDAQ: CFFN) is one of 310 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Capitol Federal Financial to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.

Institutional and Insider Ownership

75.3% of Capitol Federal Financial shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 2.2% of Capitol Federal Financial shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Capitol Federal Financial has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Capitol Federal Financial’s competitors have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Capitol Federal Financial and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capitol Federal Financial 0 1 0 0 2.00
Capitol Federal Financial Competitors 2265 8674 8611 359 2.35

Capitol Federal Financial currently has a consensus price target of $15.00, indicating a potential upside of 9.57%. As a group, “Banks” companies have a potential downside of 10.00%. Given Capitol Federal Financial’s higher possible upside, equities analysts clearly believe Capitol Federal Financial is more favorable than its competitors.

Valuation and Earnings

This table compares Capitol Federal Financial and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Capitol Federal Financial $335.38 million $84.13 million 21.73
Capitol Federal Financial Competitors $5.50 billion $827.87 million 376.63

Capitol Federal Financial’s competitors have higher revenue and earnings than Capitol Federal Financial. Capitol Federal Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.5%. Capitol Federal Financial pays out 54.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.0% of their earnings in the form of a dividend.

Profitability

This table compares Capitol Federal Financial and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capitol Federal Financial 25.09% 6.14% 0.92%
Capitol Federal Financial Competitors 18.66% 8.19% 0.92%

Summary

Capitol Federal Financial competitors beat Capitol Federal Financial on 11 of the 15 factors compared.

About Capitol Federal Financial

Capitol Federal Financial, Inc. is the savings and loan holding company. The Company provides a range of retail banking services, through its subsidiary, Capitol Federal Savings Bank (the Bank), a federal savings bank that serves primarily the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia and Salina, Kansas and portions of the metropolitan area of greater Kansas City. The Company attracts retail deposits from the general public and invests those funds primarily in permanent loans secured by first mortgages on owner-occupied, one- to four-family residences. In addition to providing full service banking offices, it provides its customers mobile banking, telephone banking and bill payment services, and online banking and bill payment services. Its primary lending business is originating and purchasing loans secured by one- to four-family residential properties, which results in a loan concentration in residential first mortgage loans located in Kansas and Missouri.

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