Analyzing BofI (NASDAQ:BOFI) and Its Rivals

BofI (NASDAQ: BOFI) is one of 306 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare BofI to similar businesses based on the strength of its institutional ownership, dividends, earnings, risk, valuation, analyst recommendations and profitability.

Risk & Volatility

BofI has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, BofI’s rivals have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

84.7% of BofI shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 6.2% of BofI shares are owned by company insiders. Comparatively, 10.1% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares BofI and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BofI $455.42 million $134.74 million 17.50
BofI Competitors $5.76 billion $770.90 million 400.49

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BofI and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BofI 0 1 5 0 2.83
BofI Competitors 2454 8835 8857 370 2.35

BofI currently has a consensus price target of $35.83, suggesting a potential downside of 2.04%. As a group, “Banks” companies have a potential downside of 4.62%. Given BofI’s stronger consensus rating and higher probable upside, analysts clearly believe BofI is more favorable than its rivals.

Profitability

This table compares BofI and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BofI 28.37% 17.27% 1.67%
BofI Competitors 17.49% 8.40% 0.95%

Summary

BofI beats its rivals on 7 of the 13 factors compared.

About BofI

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.

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