Comparing IF Bancorp (NASDAQ:IROQ) & Territorial Bancorp (NASDAQ:TBNK)

IF Bancorp (NASDAQ:IROQGet Rating) and Territorial Bancorp (NASDAQ:TBNKGet Rating) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Dividends

IF Bancorp pays an annual dividend of $0.35 per share and has a dividend yield of 1.5%. Territorial Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 3.9%. IF Bancorp pays out 17.8% of its earnings in the form of a dividend. Territorial Bancorp pays out 48.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. IF Bancorp has increased its dividend for 1 consecutive years.

Volatility & Risk

IF Bancorp has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Territorial Bancorp has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Institutional and Insider Ownership

37.1% of IF Bancorp shares are owned by institutional investors. Comparatively, 54.0% of Territorial Bancorp shares are owned by institutional investors. 13.3% of IF Bancorp shares are owned by company insiders. Comparatively, 8.7% of Territorial Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares IF Bancorp and Territorial Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IF Bancorp $30.61 million 2.50 $5.35 million $1.97 11.93
Territorial Bancorp $66.77 million 3.28 $17.43 million $1.91 12.31

Territorial Bancorp has higher revenue and earnings than IF Bancorp. IF Bancorp is trading at a lower price-to-earnings ratio than Territorial Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for IF Bancorp and Territorial Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IF Bancorp 0 0 0 0 N/A
Territorial Bancorp 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
IF Bancorp 20.20% 7.20% 0.80%
Territorial Bancorp 26.10% 6.90% 0.82%

Summary

Territorial Bancorp beats IF Bancorp on 8 of the 14 factors compared between the two stocks.

IF Bancorp Company Profile (Get Rating)

IF Bancorp, Inc. operates as the savings and loan holding company for Iroquois Federal Savings and Loan Association that provides a range of banking and financial services to individual and corporate clients. The company offers various deposit accounts, including savings accounts, certificates of deposit, money market accounts, commercial and personal checking accounts, individual retirement accounts, and health savings accounts. It also provides loans comprising one- to four-family residential mortgage loans; multi-family mortgage loans; commercial real estate loans, such as farm loans; home equity lines of credit; commercial business loans; and consumer loans primarily consisting of automobile loans, as well as construction loans and land development loans. In addition, the company sells property and casualty insurance, as well as offers annuities; mutual funds; individual and group retirement plans; life, disability, and health insurance; individual securities; managed accounts; and other financial services. Further, it invests in securities; and provides ATM, online banking and bill pay, mobile banking, ACH origination, remote deposit capture, and telephone banking services. As of August 31, 2021, it operated a network of seven full-service banking offices located in Watseka, Danville, Clifton, Hoopeston, Savoy, Bourbonnais, and Champaign, Illinois; and a loan production and wealth management office in Osage Beach, Missouri. IF Bancorp, Inc. was founded in 1883 and is headquartered in Watseka, Illinois.

Territorial Bancorp Company Profile (Get Rating)

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that provides 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 accounts, certificates of deposit, money market accounts, commercial and regular checking accounts, and Super NOW accounts. It also provides various loan products comprising one-to four-family residential mortgage; home equity; consumer; multi-family mortgage; commercial business; and construction, commercial, and other nonresidential real estate loans, as well as lines of credit and investment securities. In addition, the company engages in insurance agency activities. Further, it provides various non-deposit investments, including annuities and mutual funds through a third-party broker-dealer. The company operates through a network of 29 full-service branches located in the state of Hawaii. Territorial Bancorp Inc. was founded in 1921 and is based in Honolulu, Hawaii.

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