Comparing NASB Financial (OTCMKTS:NASB) & Capitol Federal Financial (NASDAQ:CFFN)

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

Volatility and Risk

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

Institutional & Insider Ownership

88.5% of Capitol Federal Financial shares are held by institutional investors. 3.2% of Capitol Federal Financial shares are held by insiders. Comparatively, 47.0% of NASB Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Capitol Federal Financial and NASB Financial, as provided by MarketBeat.

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

Capitol Federal Financial currently has a consensus price target of $6.50, suggesting a potential upside of 24.05%. Given Capitol Federal Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Capitol Federal Financial is more favorable than NASB Financial.

Profitability

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

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

Dividends

Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 6.5%. NASB Financial pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. 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. NASB Financial pays out 25.6% of its earnings in the form of a dividend.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capitol Federal Financial	$180.76 million	3.85	$38.01 million	$0.39	13.44
NASB Financial	$149.35 million	1.63	$28.26 million	$3.90	8.63

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.

Summary

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

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.

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.