Astoria Financial (AF) and Blue Hills Bancorp (BHBK) Head-To-Head Comparison

Blue Hills Bancorp (NASDAQ: BHBK) and Astoria Financial (NYSE:AF) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

51.9% of Blue Hills Bancorp shares are held by institutional investors. Comparatively, 83.6% of Astoria Financial shares are held by institutional investors. 3.7% of Blue Hills Bancorp shares are held by company insiders. Comparatively, 9.8% of Astoria Financial shares are held by company 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.

Earnings and Valuation

This table compares Blue Hills Bancorp and Astoria Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Hills Bancorp $81.67 million 6.92 $8.65 million $0.79 26.65
Astoria Financial N/A N/A N/A $0.57 37.72

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Blue Hills Bancorp and Astoria Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Hills Bancorp 0 2 0 0 2.00
Astoria Financial 0 2 1 0 2.33

Blue Hills Bancorp currently has a consensus target price of $22.50, indicating a potential upside of 6.89%. Astoria Financial has a consensus target price of $22.00, indicating a potential upside of 2.33%. Given Blue Hills Bancorp’s higher possible upside, research analysts clearly believe Blue Hills Bancorp is more favorable than Astoria Financial.

Volatility and Risk

Blue Hills Bancorp has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Astoria Financial has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Dividends

Blue Hills Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Astoria Financial pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Blue Hills Bancorp pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Astoria Financial pays out 28.1% of its earnings in the form of a dividend.

Profitability

This table compares Blue Hills Bancorp and Astoria Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Hills Bancorp 19.33% 3.50% 0.55%
Astoria Financial 19.90% 3.91% 0.51%

Summary

Astoria Financial beats Blue Hills Bancorp on 9 of the 14 factors compared between the two stocks.

About Blue Hills Bancorp

Blue Hills Bancorp, Inc. is a bank holding company for the Blue Hills Bank (the Bank). Blue Hills Bank is a Massachusetts-chartered savings bank. As of December 31, 2016, the Bank provided financial services to individuals, families, small to mid-size businesses and government and non-profit organizations online and through its 11 full-service branch offices located in Brookline, Dedham, Hyde Park, Milton, Nantucket, Norwood, West Roxbury, and Westwood, Massachusetts. Its primary deposit-taking market includes Norfolk, Suffolk and Nantucket Counties in Massachusetts, and its lending market is primarily based in eastern Massachusetts. Its business consists primarily of accepting deposits from the general public, commercial businesses and government and non-profit organizations, and investing those deposits, together with funds generated from operations and borrowings in one- to four-family residential mortgage loans, commercial business loans and investment securities, among others.

About Astoria Financial

Astoria Financial Corporation is a unitary savings and loan holding company. The Company’s principal business is the operation of its subsidiary, Astoria Bank. Astoria Bank’s primary business is attracting retail deposits from the general public and businesses and investing those deposits, together with funds generated from operations, principal repayments on loans and securities and borrowings, primarily in multi-family and commercial real estate mortgage loans, one- to four-family, or residential, mortgage loans and mortgage-backed securities. Astoria Bank also invests in consumer and other loans, the United States Government, government agency and government-sponsored enterprise (GSE) securities, and other investments permitted by federal banking laws and regulations. Its loan portfolio consists primarily of mortgage loans, and consumer and other loans. The Company’s investment activities include securities available-for-sale and securities held-to-maturity.

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