Head-To-Head Survey: Carver Bancorp (NASDAQ:CARV) versus Territorial Bancorp (NASDAQ:TBNK)

Carver Bancorp (NASDAQ:CARV) and Territorial Bancorp (NASDAQ:TBNK) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares Carver Bancorp and Territorial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carver Bancorp -21.18% -177.04% -0.99%
Territorial Bancorp 26.26% 8.86% 1.02%

Volatility and Risk

Carver Bancorp has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Territorial Bancorp has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

20.1% of Carver Bancorp shares are held by institutional investors. Comparatively, 45.7% of Territorial Bancorp shares are held by institutional investors. 0.2% of Carver Bancorp shares are held by insiders. Comparatively, 10.8% of Territorial Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carver Bancorp $28.09 million 0.43 -$5.94 million N/A N/A
Territorial Bancorp $76.46 million 3.77 $19.21 million $2.03 14.73

Territorial Bancorp has higher revenue and earnings than Carver Bancorp.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Carver Bancorp and Territorial Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carver Bancorp 0 0 0 0 N/A
Territorial Bancorp 0 2 0 0 2.00

Territorial Bancorp has a consensus target price of $32.00, indicating a potential upside of 7.02%. Given Territorial Bancorp’s higher possible upside, analysts clearly believe Territorial Bancorp is more favorable than Carver Bancorp.

Dividends

Territorial Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Carver Bancorp does not pay a dividend. Territorial Bancorp pays out 43.3% of its earnings in the form of a dividend. Territorial Bancorp has increased its dividend for 6 consecutive years.

Summary

Territorial Bancorp beats Carver Bancorp on 11 of the 13 factors compared between the two stocks.

Carver Bancorp Company Profile

Carver Bancorp, Inc. operates as a holding company for Carver Federal Savings Bank, a federally chartered savings bank that provides consumer and commercial banking services for consumers, businesses, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company also provides one-to-four family residential, multifamily real estate, and commercial real estate lending products, as well as construction, business, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit card, online banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. The company operates through one administrative office, nine branches, and three ATM locations. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.

Territorial Bancorp Company Profile

Territorial Bancorp, Inc. operates as the bank holding company for Territorial Savings Bank, which provides financial services to individuals, families, and businesses in Hawaii. Its business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in one- to four-family residential mortgage loans and investment securities. The firm operates through the following portfolio segments: Residential Mortgage; Construction, Commercial and Other Mortgage Loans; Home Equity Loans and Lines of Credit; and Consumer and Other. It also offers deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial, and regular checking accounts. The company was founded on November 3, 2008 and is headquartered in Honolulu, HI.

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