Contrasting Astoria Financial (AF) and Blue Hills Bancorp (NASDAQ:BHBK)

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

Dividends

Astoria Financial pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Blue Hills Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Astoria Financial pays out 28.1% of its earnings in the form of a dividend. Blue Hills Bancorp pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Astoria Financial N/A N/A N/A $0.57 37.72
Blue Hills Bancorp $101.86 million 5.06 $8.65 million $0.68 28.24

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 summary of current recommendations and price targets for Astoria Financial and Blue Hills Bancorp, as provided by MarketBeat.com.

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

Astoria Financial presently has a consensus price target of $22.00, indicating a potential upside of 2.33%. Blue Hills Bancorp has a consensus price target of $22.50, indicating a potential upside of 17.19%. Given Blue Hills Bancorp’s higher possible upside, analysts plainly believe Blue Hills Bancorp is more favorable than Astoria Financial.

Insider and Institutional Ownership

83.6% of Astoria Financial shares are held by institutional investors. Comparatively, 52.0% of Blue Hills Bancorp shares are held by institutional investors. 9.8% of Astoria Financial shares are held by insiders. Comparatively, 3.7% of Blue Hills Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Astoria Financial has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Blue Hills Bancorp has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Astoria Financial 19.90% 3.91% 0.51%
Blue Hills Bancorp 16.19% 3.47% 0.55%

Summary

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

Astoria Financial Company Profile

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.

Blue Hills Bancorp Company Profile

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.

Receive News & Ratings for Astoria Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Astoria Financial and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply