Broadway Financial (NASDAQ:BYFC) versus BankUnited (NYSE:BKU) Head-To-Head Review

Broadway Financial (NASDAQ:BYFC – Get Rating) and BankUnited (NYSE:BKU – Get Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Broadway Financial and BankUnited, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	0	0	0	0	N/A
BankUnited	3	2	0	0	1.40

BankUnited has a consensus target price of $41.29, suggesting a potential upside of 17.22%. Given BankUnited’s higher possible upside, analysts clearly believe BankUnited is more favorable than Broadway Financial.

Earnings & Valuation

This table compares Broadway Financial and BankUnited’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$37.46 million	2.66	$5.64 million	$0.08	16.38
BankUnited	$1.31 billion	2.01	$284.97 million	$3.55	9.92

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

Insider & Institutional Ownership

12.8% of Broadway Financial shares are owned by institutional investors. 2.5% of Broadway Financial shares are owned by insiders. Comparatively, 0.9% of BankUnited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Broadway Financial and BankUnited’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	14.99%	4.24%	0.48%
BankUnited	21.78%	11.08%	0.78%

Risk & Volatility

Broadway Financial has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, BankUnited has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Summary

BankUnited beats Broadway Financial on 8 of the 12 factors compared between the two stocks.

About Broadway Financial

(Get Rating)

Broadway Financial Corp. is a bank holding company, which engages in attracting deposits from the general public through its subsidiary. It also offers business lending, checking, savings, cash management, and banking solutions. The company was founded in September 1995 and is headquartered in Los Angeles, CA.

About BankUnited

(Get Rating)

BankUnited, Inc. is a holding company, which engages in the provision of commercial and consumer banking services through its subsidiary, BankUnited, N.A.. Its services include corporate banking, commercial real estate, treasury management, business checking accounts, business online banking solutions, and home mortgages. The company was founded on May 21, 2009 and is headquartered in Miami Lakes, FL.