Analyzing Capitol Federal Financial (NASDAQ:CFFN) & Broadway Financial (NASDAQ:BYFC)

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

Analyst Ratings

This is a summary of recent ratings and target prices for Capitol Federal Financial and Broadway Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capitol Federal Financial 0 0 1 0 3.00
Broadway Financial 0 0 0 0 N/A

Capitol Federal Financial presently has a consensus price target of $15.00, indicating a potential upside of 36.36%. Given Capitol Federal Financial’s higher possible upside, analysts plainly believe Capitol Federal Financial is more favorable than Broadway Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Capitol Federal Financial 20.81% 5.48% 0.77%
Broadway Financial -2.88% -1.05% -0.12%

Valuation & Earnings

This table compares Capitol Federal Financial and Broadway Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capitol Federal Financial $351.91 million 4.42 $94.24 million $0.68 16.18
Broadway Financial $17.90 million 3.31 -$210,000.00 N/A N/A

Capitol Federal Financial has higher revenue and earnings than Broadway Financial.

Institutional & Insider Ownership

74.0% of Capitol Federal Financial shares are held by institutional investors. Comparatively, 8.6% of Broadway Financial shares are held by institutional investors. 2.1% of Capitol Federal Financial shares are held by company insiders. Comparatively, 4.4% of Broadway Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Capitol Federal Financial has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Summary

Capitol Federal Financial beats Broadway Financial on 10 of the 12 factors compared between the two stocks.

Capitol Federal Financial Company Profile

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 deposits. It also provides various loan products, such as one- to four-family residential real estate loans; construction-to-permanent loans; consumer loans comprising home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits; and commercial real estate loans that include various property types, which comprise hotels, office and retail buildings, senior housing facilities, and multi-family dwellings located in Texas, Missouri, Kansas, Kentucky, Nebraska, Colorado, Arkansas, California, Montana, and Arizona. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; invests in various securities; and engages in the reinsurance and real estate businesses. It operates a network of 58 branches, including 48 traditional branches and 10 in-store branches located in 9 counties throughout Kansas and 3 counties in Missouri. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, as well as the metropolitan area of greater Kansas. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.

Broadway Financial Company Profile

Broadway Financial Corporation operates as the holding company for Broadway Federal Bank, f.s.b. that engages in the savings and loan business in Southern California. It accepts various deposit products, such as savings accounts, checking accounts, NOW accounts, money market accounts, and fixed-term certificates of deposit. The company also provides loan products, including multi-family mortgage, single family mortgage, commercial real estate, church, construction, commercial, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company operates through three branch offices comprising two offices in Los Angeles and one in Inglewood, California. Broadway Financial Corporation was founded in 1946 and is headquartered in Los Angeles, California.

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