Critical Survey: TC Bancshares (NASDAQ:TCBC) & Capitol Federal Financial (NASDAQ:CFFN)

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

Earnings & Valuation

This table compares TC Bancshares and Capitol Federal Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TC Bancshares	$21.97 million	2.75	$270,000.00	$0.06	233.00
Capitol Federal Financial	$380.96 million	2.07	-$101.66 million	($0.94)	-6.28

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

Volatility and Risk

TC Bancshares has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

23.6% of TC Bancshares shares are held by institutional investors. Comparatively, 88.5% of Capitol Federal Financial shares are held by institutional investors. 6.9% of TC Bancshares shares are held by insiders. Comparatively, 2.2% of Capitol Federal Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

TC Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 5.8%. TC Bancshares pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capitol Federal Financial pays out -36.2% of its earnings in the form of a dividend. Capitol Federal Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TC Bancshares	1.21%	0.32%	0.06%
Capitol Federal Financial	-34.17%	3.85%	0.40%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TC Bancshares	0	0	0	0	N/A
Capitol Federal Financial	0	1	0	0	2.00

Capitol Federal Financial has a consensus target price of $5.00, suggesting a potential downside of 15.25%. Given Capitol Federal Financial’s higher probable upside, analysts clearly believe Capitol Federal Financial is more favorable than TC Bancshares.

Summary

Capitol Federal Financial beats TC Bancshares on 8 of the 14 factors compared between the two stocks.

About TC Bancshares

TC Bancshares, Inc. operates as the holding company for TC Federal Bank that provides various banking services for individual and commercial customers in the United States. It accepts various deposit products, including personal checking accounts, business checking accounts, savings accounts, money market accounts, and certificates of deposit. The company also offers lending products comprising single-family residential loans, home equity lines of credit, closed-end home equity loans, consumer loans, commercial and multi-family residential real estate loans, commercial and industrial loans, construction loans, land development loans, and SBA/USDA guaranteed loans. It operates branches in Thomasville, Georgia and Tallahassee, Florida, as well as loan production offices in Savannah, Georgia, and Jacksonville, Florida. The company was founded in 1934 and is based in Thomasville, Georgia.

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.