Financial Comparison: Meta Financial Group (CASH) & Provident Financial (PROV)

Meta Financial Group (NASDAQ: CASH) and Provident Financial (NASDAQ:PROV) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Meta Financial Group and Provident Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meta Financial Group 15.40% 15.08% 1.39%
Provident Financial 2.55% 4.50% 0.47%

Institutional & Insider Ownership

79.1% of Meta Financial Group shares are held by institutional investors. Comparatively, 60.0% of Provident Financial shares are held by institutional investors. 5.4% of Meta Financial Group shares are held by insiders. Comparatively, 12.7% of Provident Financial shares 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Meta Financial Group and Provident Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meta Financial Group 0 0 4 0 3.00
Provident Financial 0 2 0 0 2.00

Meta Financial Group presently has a consensus target price of $118.00, suggesting a potential upside of 18.06%. Provident Financial has a consensus target price of $19.50, suggesting a potential upside of 1.35%. Given Meta Financial Group’s stronger consensus rating and higher possible upside, analysts clearly believe Meta Financial Group is more favorable than Provident Financial.

Dividends

Meta Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. Meta Financial Group pays out 7.4% of its earnings in the form of a dividend. Provident Financial pays out 87.5% 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 Meta Financial Group and Provident Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meta Financial Group $280.27 million 3.46 $44.91 million $7.05 14.18
Provident Financial $73.24 million 1.96 $5.20 million $0.64 30.06

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

Volatility & Risk

Meta Financial Group has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Summary

Meta Financial Group beats Provident Financial on 13 of the 16 factors compared between the two stocks.

Meta Financial Group Company Profile

Meta Financial Group, Inc. operates as the holding company for MetaBank that offers various banking products and services to individuals, small businesses, financial institutions, and other businesses. It provides various deposit products, such as statement savings accounts, money market savings accounts, and NOW and regular checking accounts, as well as deposits related to prepaid cards, which primarily include checking accounts and certificate accounts. The company's loan portfolio comprises one-to-four family residential mortgage, commercial and multi-family real estate, agricultural operations and real estate, construction, consumer, commercial operating, and premium finance loans. It also issues prepaid cards and consumer credit products; sponsor automatic teller machines into various debit networks; and offers tax refund transfer and other payment industry products and services. The company operates a total of 10 full-service branch banking offices in Storm Lake and Des Moines, Iowa, as well as Brookings and Sioux Falls, South Dakota; one non-retail service branch in Memphis, Tennessee; and 7 non-branch offices located in South Dakota, Texas, California, Kentucky, and Pennsylvania. Meta Financial Group, Inc. was founded in 1954 and is headquartered in Sioux Falls, South Dakota.

Provident Financial Company Profile

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. It operates through two segments, Provident Bank and Provident Bank Mortgage. The company's deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, money market accounts, and time deposits; and loan portfolio comprises single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. It also originates, purchases, and sells single-family mortgage loans, including second mortgages and equity lines of credit. In addition, the company offers investment services comprising the sale of investment products, such as annuities and mutual funds, as well as trustee services for real estate transactions. It operates 13 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. The company was founded in 1956 and is headquartered in Riverside, California.

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