Critical Contrast: Chester Bancorp (OTCMKTS:CNBA) versus Territorial Bancorp (NASDAQ:TBNK)

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

Earnings and Valuation

This table compares Chester Bancorp and Territorial Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chester Bancorp	N/A	N/A	N/A	N/A	N/A
Territorial Bancorp	$74.92 million	0.98	-$4.30 million	($0.50)	-16.56

Chester Bancorp has higher earnings, but lower revenue than Territorial Bancorp.

Dividends

Chester Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 15.1%. Territorial Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Territorial Bancorp pays out -8.0% of its earnings in the form of a dividend.

Profitability

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

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

Insider and Institutional Ownership

50.4% of Territorial Bancorp shares are owned by institutional investors. 38.8% of Chester Bancorp 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.

Risk and Volatility

Chester Bancorp has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Territorial Bancorp has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Chester Bancorp and Territorial Bancorp, as reported by MarketBeat.com.

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

Territorial Bancorp has a consensus target price of $9.89, indicating a potential upside of 19.38%. Given Territorial Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Territorial Bancorp is more favorable than Chester Bancorp.

Summary

Territorial Bancorp beats Chester Bancorp on 6 of the 11 factors compared between the two stocks.

About Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, Illinois.

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.