Contrasting Provident Financial (NASDAQ:PROV) and Axos Financial (NASDAQ:AX)

Axos Financial (NASDAQ:AXGet Rating) and Provident Financial (NASDAQ:PROVGet Rating) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Volatility & Risk

Axos Financial has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Earnings & Valuation

This table compares Axos Financial and Provident Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axos Financial $723.12 million 2.91 $215.71 million $3.91 9.03
Provident Financial $39.77 million 2.69 $7.56 million $1.32 11.11

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Axos Financial and Provident Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axos Financial 0 0 0 0 N/A
Provident Financial 0 0 0 0 N/A

Institutional & Insider Ownership

76.2% of Axos Financial shares are held by institutional investors. Comparatively, 60.2% of Provident Financial shares are held by institutional investors. 4.7% of Axos Financial shares are held by insiders. Comparatively, 14.0% of Provident Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Axos Financial and Provident Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axos Financial 32.23% 16.41% 1.61%
Provident Financial 25.79% 7.80% 0.84%

Summary

Axos Financial beats Provident Financial on 9 of the 11 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 Provident Financial (Get Rating)

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. Its deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. The company also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 12 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.

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