TFS Financial (NASDAQ:TFSL) & Bankinter (OTCMKTS:BKNIY) Critical Contrast

Bankinter (OTCMKTS:BKNIY) and TFS Financial (NASDAQ:TFSL) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Bankinter and TFS Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bankinter	24.27%	18.20%	0.90%
TFS Financial	12.36%	5.32%	0.58%

Analyst Recommendations

This is a breakdown of recent recommendations for Bankinter and TFS Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	3	2	0	2.17
TFS Financial	0	3	1	0	2.25

TFS Financial has a consensus price target of $19.00, suggesting a potential upside of 15.57%. Given TFS Financial’s stronger consensus rating and higher possible upside, analysts clearly believe TFS Financial is more favorable than Bankinter.

Earnings and Valuation

This table compares Bankinter and TFS Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.27 billion	3.17	$1.23 billion	$1.46	12.74
TFS Financial	$791.96 million	5.82	$90.96 million	$0.36	45.67

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

Dividends

Bankinter pays an annual dividend of $0.45 per share and has a dividend yield of 2.4%. TFS Financial pays an annual dividend of $1.27 per share and has a dividend yield of 7.7%. Bankinter pays out 30.8% of its earnings in the form of a dividend. TFS Financial pays out 352.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

9.8% of TFS Financial shares are owned by institutional investors. 0.7% of TFS Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Bankinter has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, TFS Financial has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.

About TFS Financial

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and multiple full-service branches and loan production offices located throughout the states of Ohio and Florida. TFS Financial Corporation was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.