Critical Analysis: Axos Financial (AX) vs. Its Rivals

Axos Financial (NASDAQ:AXGet Rating) is one of 118 public companies in the “Federal savings institutions” industry, but how does it contrast to its rivals? We will compare Axos Financial to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, risk, profitability, earnings and valuation.

Insider & Institutional Ownership

77.1% of Axos Financial shares are owned by institutional investors. Comparatively, 38.4% of shares of all “Federal savings institutions” companies are owned by institutional investors. 4.7% of Axos Financial shares are owned by insiders. Comparatively, 9.0% of shares of all “Federal savings institutions” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Axos Financial and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Axos Financial $723.12 million $215.71 million 10.71
Axos Financial Competitors $813.99 million $225.44 million 7.03

Axos Financial’s rivals have higher revenue and earnings than Axos Financial. Axos Financial is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Axos Financial and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axos Financial 0 0 0 0 N/A
Axos Financial Competitors 419 1804 1459 95 2.33

As a group, “Federal savings institutions” companies have a potential upside of 20.32%. Given Axos Financial’s rivals higher probable upside, analysts plainly believe Axos Financial has less favorable growth aspects than its rivals.

Risk and Volatility

Axos Financial has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Axos Financial’s rivals have a beta of 0.58, indicating that their average stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Axos Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axos Financial 31.52% 16.50% 1.59%
Axos Financial Competitors 20.63% 8.55% 0.97%

Summary

Axos Financial beats its rivals on 6 of the 10 factors compared.

About Axos Financial (Get Rating)

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate term unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text messaging banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

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