Critical Survey: Territorial Bancorp (NASDAQ:TBNK) vs. FFW (OTCMKTS:FFWC)

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

Valuation and Earnings

This table compares FFW and Territorial Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FFW	$29.39 million	1.45	$4.09 million	$4.19	9.31
Territorial Bancorp	$34.30 million	2.16	-$4.30 million	($0.50)	-16.74

FFW has higher earnings, but lower revenue than Territorial Bancorp. Territorial Bancorp is trading at a lower price-to-earnings ratio than FFW, indicating that it is currently the more affordable of the two stocks.

Dividends

FFW pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Territorial Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. FFW pays out 28.6% of its earnings in the form of a dividend. Territorial Bancorp pays out -8.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

50.3% of Territorial Bancorp shares are owned by institutional investors. 17.0% of FFW shares are owned by insiders. Comparatively, 9.0% of Territorial Bancorp 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FFW	14.99%	N/A	N/A
Territorial Bancorp	-5.74%	-1.72%	-0.20%

Analyst Ratings

This is a breakdown of current ratings and price targets for FFW and Territorial Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FFW	0	0	0	0	0.00
Territorial Bancorp	0	2	0	0	2.00

Territorial Bancorp has a consensus price target of $9.89, suggesting a potential upside of 18.10%. Given Territorial Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Territorial Bancorp is more favorable than FFW.

Risk & Volatility

FFW has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Territorial Bancorp has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Summary

FFW beats Territorial Bancorp on 8 of the 15 factors compared between the two stocks.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.

About Territorial Bancorp

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that engages in the provision of various financial services to individuals, families, and businesses in the State of Hawaii. The company offers a range of deposit accounts, including passbook and statement savings, money market, commercial and regular checking, and Super NOW accounts, as well as certificates of deposit. It also provides various loan products, such as one-to four-family residential mortgage loans; home equity loans; consumer loans; and multi-family mortgage, commercial business, construction, commercial real estate, and other nonresidential real estate loans, as well as lines of credit and investment securities. In addition, the company is involved in the insurance agency activities. Further, it provides various non-deposit investments comprising annuities and mutual funds through a third-party broker-dealer. The company was founded in 1921 and is headquartered in Honolulu, Hawaii.