Capitol Federal Financial (NASDAQ: CFFN) is one of 307 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Capitol Federal Financial to similar companies based on the strength of its dividends, valuation, earnings, analyst recommendations, risk, profitability and institutional ownership.

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 18.41% 8.25% 0.93%

Risk and Volatility

Capitol Federal Financial has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Capitol Federal Financial’s competitors have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

75.3% of Capitol Federal Financial shares are owned by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are owned by institutional investors. 2.5% of Capitol Federal Financial shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Capitol Federal Financial $335.38 million $84.13 million 21.79
Capitol Federal Financial Competitors $5.50 billion $827.87 million 382.16

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 54.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for Capitol Federal Financial and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capitol Federal Financial 0 1 0 0 2.00
Capitol Federal Financial Competitors 2174 8333 8427 333 2.36

Capitol Federal Financial presently has a consensus target price of $15.00, indicating a potential upside of 11.03%. As a group, “Banks” companies have a potential downside of 7.23%. Given Capitol Federal Financial’s higher probable upside, research analysts clearly believe Capitol Federal Financial is more favorable than its competitors.

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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