Critical Review: Capitol Federal Financial (NASDAQ:CFFN) and Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL)

Capitol Federal Financial (NASDAQ:CFFNGet Rating) and Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBLGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Capitol Federal Financial and Home Federal Bancorp, Inc. of Louisiana, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capitol Federal Financial 0 0 0 0 N/A
Home Federal Bancorp, Inc. of Louisiana 0 0 0 0 N/A

Profitability

This table compares Capitol Federal Financial and Home Federal Bancorp, Inc. of Louisiana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capitol Federal Financial 29.42% 6.61% 0.84%
Home Federal Bancorp, Inc. of Louisiana 22.43% 9.61% 0.90%

Dividends

Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 3.5%. Home Federal Bancorp, Inc. of Louisiana pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. Capitol Federal Financial pays out 57.6% of its earnings in the form of a dividend. Home Federal Bancorp, Inc. of Louisiana pays out 27.4% 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. Home Federal Bancorp, Inc. of Louisiana has raised its dividend for 8 consecutive years.

Volatility & Risk

Capitol Federal Financial has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Home Federal Bancorp, Inc. of Louisiana has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

80.4% of Capitol Federal Financial shares are held by institutional investors. Comparatively, 28.9% of Home Federal Bancorp, Inc. of Louisiana shares are held by institutional investors. 2.0% of Capitol Federal Financial shares are held by insiders. Comparatively, 21.2% of Home Federal Bancorp, Inc. of Louisiana shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Capitol Federal Financial and Home Federal Bancorp, Inc. of Louisiana’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 $286.27 million 4.72 $76.08 million $0.59 16.51
Home Federal Bancorp, Inc. of Louisiana $25.70 million 2.61 $5.36 million $1.46 13.53

Capitol Federal Financial has higher revenue and earnings than Home Federal Bancorp, Inc. of Louisiana. Home Federal Bancorp, Inc. of Louisiana 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.

About Capitol Federal Financial (Get Rating)

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 deposit 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, and construction loans, as well as consumer loans, which include home equity, loans and lines of credit, home improvement loans, vehicle loans, and loans secured by saving deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; and invests in various securities. It operates a network of 54 branches, including 45 traditional branches and nine in-store branches located in nine counties throughout Kansas and two counties in Missouri. 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 Home Federal Bancorp, Inc. of Louisiana (Get Rating)

Home Federal Bancorp, Inc. of Louisiana operates as the holding company for Home Federal Bank that provides various financial services to individuals, corporate entities, and other organizations. The company accepts various deposits, such as passbook savings, certificates of deposit, and demand deposit accounts. Its loan products include one-to-four family residential real estate loans; commercial real estate secured loans; multi-family residential loans; commercial business loans; land loans; construction loans; home equity and second mortgage loans; equity lines of credit; and consumer non-real estate loans, including loans secured by deposit accounts, automobile loans, overdrafts, and other unsecured loans. As of August 25, 2021, it operated seven full-service banking offices. The company was founded in 1924 and is based in Shreveport, Louisiana.

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