NASB Financial (OTCMKTS:NASB) & Capitol Federal Financial (NASDAQ:CFFN) Head to Head Contrast

NASB Financial (OTCMKTS:NASB) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

NASB Financial pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 6.6%. NASB Financial pays out 25.6% of its earnings in the form of a dividend. Capitol Federal Financial pays out 87.2% 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 and Insider Ownership

88.5% of Capitol Federal Financial shares are held by institutional investors. 47.0% of NASB Financial shares are held by insiders. Comparatively, 3.2% of Capitol Federal Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares NASB Financial and Capitol Federal Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NASB Financial	$149.35 million	1.62	$28.26 million	$3.90	8.59
Capitol Federal Financial	$180.76 million	3.79	$38.01 million	$0.39	13.23

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

Risk and Volatility

NASB Financial has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares NASB Financial and Capitol Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NASB Financial	17.41%	7.01%	1.00%
Capitol Federal Financial	12.67%	4.96%	0.53%

Analyst Ratings

This is a breakdown of current ratings and price targets for NASB Financial and Capitol Federal Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NASB Financial	0	0	0	0	0.00
Capitol Federal Financial	0	2	0	0	2.00

Capitol Federal Financial has a consensus target price of $6.50, indicating a potential upside of 25.97%. Given Capitol Federal Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Capitol Federal Financial is more favorable than NASB Financial.

Summary

Capitol Federal Financial beats NASB Financial on 9 of the 15 factors compared between the two stocks.

About NASB Financial

NASB Financial, Inc. operates as a unitary thrift holding company for North American Savings Bank, F.S.B. that provides various banking products and services in the United States. The company offers checking, savings, money market, and certificate of deposit accounts. It also mortgages and refinancing products, including conventional, veterans administration, federal housing administration, jumbo, and IRA residential real-estate loans. In addition, the company provides commercial real estate development and commercial loans, such as multifamily, retail, single-tenant, multi-tenant, office, industrial, and other loans; investment property loans; and construction and development loans. The company was founded in 1927 and is based in Grandview, Missouri.

About Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.