Timberland Bancorp (NASDAQ: ANCB) and Anchor Bancorp (NASDAQ:ANCB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility and Risk

Timberland Bancorp has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Anchor Bancorp has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

58.6% of Timberland Bancorp shares are held by institutional investors. Comparatively, 43.9% of Anchor Bancorp shares are held by institutional investors. 6.3% of Timberland Bancorp shares are held by company insiders. Comparatively, 5.6% of Anchor Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Timberland Bancorp and Anchor Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timberland Bancorp 0 0 0 0 N/A
Anchor Bancorp 0 1 0 0 2.00

Anchor Bancorp has a consensus target price of $31.00, indicating a potential upside of 8.58%. Given Anchor Bancorp’s higher possible upside, analysts clearly believe Anchor Bancorp is more favorable than Timberland Bancorp.

Profitability

This table compares Timberland Bancorp and Anchor Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Timberland Bancorp 30.03% 13.72% 1.61%
Anchor Bancorp 8.32% 6.95% 0.97%

Valuation and Earnings

This table compares Timberland Bancorp and Anchor Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Timberland Bancorp $50.71 million 4.82 $14.16 million N/A N/A
Anchor Bancorp $26.35 million 2.69 $2.19 million N/A N/A

Timberland Bancorp has higher revenue and earnings than Anchor Bancorp.

Dividends

Timberland Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 1.6%. Anchor Bancorp does not pay a dividend. Timberland Bancorp has raised its dividend for 2 consecutive years.

Summary

Timberland Bancorp beats Anchor Bancorp on 11 of the 13 factors compared between the two stocks.

Timberland Bancorp Company Profile

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various banking services in Washington. It offers various deposit products, including money market deposit accounts, checking accounts, regular savings accounts, and certificates of deposit. The company also provides one-to four-family residential, multi-family, commercial real estate, construction, custom and owner/builder construction, speculative one- to four-family construction, commercial construction, multi-family construction, land development construction, and land loans. In addition, it offers consumer loans comprising home equity lines of credit, second mortgage loans, and savings account loans; and automobile loans, boat loans, motorcycle loans, recreational vehicle loans, and unsecured loans, as well as commercial business loans. The company operates 22 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King, and Lewis counties in Washington. As of September 30, 2017, it operated 22 proprietary ATMs. The company was founded in 1915 and is based in Hoquiam, Washington.

Anchor Bancorp Company Profile

Anchor Bancorp operates as the bank holding company for Anchor Bank that provides various banking products and services in Western Washington. The company accepts deposit products, such as checking, money market deposit, and savings accounts, as well as certificates of deposit. It offers one-to-four family loans, home equity loans and lines of credit, commercial and multi-family real estate loans, commercial business loans, construction and land loans, unsecured consumer loans, and automobile loans; and other cash management services. Its investment portfolio consists of mortgage-backed securities, municipal bonds, and mutual funds. It operates 10 full-service banking offices located in Grays Harbor, Thurston, Lewis, Pierce, and Mason counties, as well as a loan production office located in King County, Washington. Anchor Bancorp was founded in 1907 and is headquartered in Lacey, Washington.

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