Critical Review: Central Plains Bancshares (NASDAQ:CPBI) vs. Capitol Federal Financial (NASDAQ:CFFN)

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

Institutional & Insider Ownership

24.3% of Central Plains Bancshares shares are owned by institutional investors. Comparatively, 88.5% of Capitol Federal Financial shares are owned by institutional investors. 8.6% of Central Plains Bancshares shares are owned by insiders. Comparatively, 2.8% of Capitol Federal Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Central Plains Bancshares has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Plains Bancshares	14.33%	5.14%	0.83%
Capitol Federal Financial	19.39%	8.39%	0.89%

Earnings & Valuation

This table compares Central Plains Bancshares 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
Central Plains Bancshares	$30.33 million	2.84	$4.00 million	$1.18	17.51
Capitol Federal Financial	$445.56 million	2.37	$86.40 million	$0.69	12.19

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Central Plains Bancshares and Capitol Federal Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Plains Bancshares	0	1	0	0	2.00
Capitol Federal Financial	0	2	1	1	2.75

Capitol Federal Financial has a consensus price target of $9.25, indicating a potential upside of 9.99%. Given Capitol Federal Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Capitol Federal Financial is more favorable than Central Plains Bancshares.

Summary

Capitol Federal Financial beats Central Plains Bancshares on 11 of the 15 factors compared between the two stocks.

About Central Plains Bancshares

Central Plains Bancshares is a bank holding company whose principal subsidiary, Central Plains Bank, provides community banking services. Its offerings include deposit accounts, consumer and business loans, and other banking services for individuals, businesses, and local organizations. The company serves communities in Nebraska through its banking operations. As a community-focused institution, Central Plains Bank supports customers’ everyday banking needs and local business activity.

About Capitol Federal Financial

Capitol Federal Financial is the holding company for Capitol Federal Savings Bank, a community bank headquartered in Topeka, Kansas. Founded in 1893, the bank has a long history of serving individuals and businesses in Kansas. The bank offers deposit products such as checking and savings accounts, money market accounts, and certificates of deposit. Its lending services include residential mortgages and home equity loans, as well as selected commercial and consumer lending products. Capitol Federal primarily serves customers through branches and other banking channels across Kansas, including communities in the Topeka, Lawrence, Wichita, and Kansas City areas.