Sound Financial Bancorp (NASDAQ:SFBC) versus CPB (NYSE:CPF) Head-To-Head Contrast

Sound Financial Bancorp (NASDAQ:SFBC) and CPB (NYSE:CPF) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sound Financial Bancorp and CPB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Financial Bancorp	0	0	0	0	0.00
CPB	0	0	1	0	3.00

CPB has a consensus target price of $35.00, indicating a potential upside of 14.03%. Given CPB’s stronger consensus rating and higher possible upside, analysts plainly believe CPB is more favorable than Sound Financial Bancorp.

Institutional & Insider Ownership

68.9% of Sound Financial Bancorp shares are held by institutional investors. Comparatively, 88.4% of CPB shares are held by institutional investors. 12.6% of Sound Financial Bancorp shares are held by company insiders. Comparatively, 2.4% of CPB 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.

Dividends

Sound Financial Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. CPB pays an annual dividend of $1.08 per share and has a dividend yield of 3.5%. Sound Financial Bancorp pays out 31.3% of its earnings in the form of a dividend. CPB pays out 48.4% 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. Sound Financial Bancorp has raised its dividend for 2 consecutive years and CPB has raised its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sound Financial Bancorp	10.02%	6.05%	0.60%
CPB	17.31%	12.80%	0.95%

Volatility and Risk

Sound Financial Bancorp has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, CPB has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sound Financial Bancorp and CPB”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Financial Bancorp	$62.03 million	1.98	$4.64 million	$2.43	19.65
CPB	$344.82 million	2.40	$53.41 million	$2.23	13.76

CPB has higher revenue and earnings than Sound Financial Bancorp. CPB 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.

Summary

CPB beats Sound Financial Bancorp on 12 of the 17 factors compared between the two stocks.

About Sound Financial Bancorp

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. The company was founded in 1953 and is headquartered in Seattle, Washington.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.