TFS Financial (NASDAQ:TFSL) vs. Provident Bancorp (NASDAQ:PVBC) Head to Head Analysis

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

Profitability

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

Net Margins Return on Equity Return on Assets
TFS Financial 15.97% 3.75% 0.46%
Provident Bancorp 23.84% N/A N/A

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 8.0%. Provident Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. TFS Financial pays out 470.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Provident Bancorp pays out 15.8% of its earnings in the form of a dividend. TFS Financial has raised its dividend for 7 consecutive years and Provident Bancorp has raised its dividend for 1 consecutive years. TFS Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations for TFS Financial and Provident Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TFS Financial 0 0 0 0 N/A
Provident Bancorp 0 0 1 0 3.00

Provident Bancorp has a consensus price target of $20.00, indicating a potential upside of 30.29%. Given Provident Bancorp’s higher possible upside, analysts plainly believe Provident Bancorp is more favorable than TFS Financial.

Institutional & Insider Ownership

8.8% of TFS Financial shares are held by institutional investors. Comparatively, 57.8% of Provident Bancorp shares are held by institutional investors. 1.3% of TFS Financial shares are held by insiders. Comparatively, 8.5% of Provident Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

TFS Financial has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Provident Bancorp has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares TFS Financial and Provident Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TFS Financial $444.65 million 8.92 $81.01 million $0.24 58.88
Provident Bancorp $69.97 million 3.91 $16.14 million $1.01 15.20

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

About TFS Financial

(Get Rating)

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and 37 full-service branches and 7 loan production offices located throughout the states of Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation operates as a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

About Provident Bancorp

(Get Rating)

Provident Bancorp, Inc. is a Maryland corporation that was formed in 2019 to be the successor corporation to Provident Bancorp, Inc., a Massachusetts corporation, and the holding company for The Provident Bank. The Provident Bank, a subsidiary of Provident Bancorp, Inc. is an innovative, commercial bank that finds solutions for its business and private clients.

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