Axos Financial (NYSE:AX) and Sound Financial Bancorp (NASDAQ:SFBC) Financial Comparison

Axos Financial (NYSE:AXGet Rating) and Sound Financial Bancorp (NASDAQ:SFBCGet Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

77.1% of Axos Financial shares are held by institutional investors. Comparatively, 44.6% of Sound Financial Bancorp shares are held by institutional investors. 4.7% of Axos Financial shares are held by company insiders. Comparatively, 12.1% of Sound Financial Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Axos Financial and Sound Financial Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axos Financial 0 0 2 1 3.33
Sound Financial Bancorp 0 0 0 0 N/A

Axos Financial currently has a consensus target price of $56.50, suggesting a potential upside of 49.95%. Given Axos Financial’s higher possible upside, equities analysts plainly believe Axos Financial is more favorable than Sound Financial Bancorp.

Profitability

This table compares Axos Financial and Sound Financial Bancorp’s 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%
Sound Financial Bancorp 20.95% 9.20% 0.91%

Earnings and Valuation

This table compares Axos Financial and Sound Financial Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axos Financial $723.12 million 3.11 $215.71 million $3.78 9.97
Sound Financial Bancorp $41.20 million 2.41 $9.16 million $3.18 11.90

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

Risk & Volatility

Axos Financial has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Sound Financial Bancorp has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Summary

Axos Financial beats Sound Financial Bancorp on 12 of the 14 factors compared between the two stocks.

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.

About Sound Financial Bancorp (Get Rating)

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides banking and other financial services for consumers and businesses. It accepts various deposits products comprising savings, money market deposit, NOW, and demand accounts, as well as certificates of deposit. The company also offers loans secured by first and second mortgages on one-to four-family residences; home equity loans, including fixed-rate loans and variable-rate lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences, and commercial and multifamily real estate; land loans; commercial business loans to finance commercial vehicles and equipment, as well as loans secured by accounts receivable and/or inventory; and secured and unsecured consumer loans, such as new and used manufactured homes, floating homes, automobiles, boats, and recreational vehicle loans, and loans secured by deposit accounts. It operates eight branch offices, including four branches in Seattle Metropolitan Statistical Area, three branches in Clallam County, and one branch in Jefferson County; and a loan production office in the Madison Park neighborhood of Seattle. The company was founded in 1953 and is headquartered in Seattle, Washington.

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