Capitol Federal Financial (NASDAQ:CFFN) versus AMB Financial (OTCMKTS:AMFC) Critical Analysis

AMB Financial (OTCMKTS:AMFC) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

1.2% of AMB Financial shares are held by institutional investors. Comparatively, 88.5% of Capitol Federal Financial shares are held by institutional investors. 37.7% of AMB Financial shares are held by insiders. Comparatively, 2.8% of Capitol Federal Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

AMB Financial pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 4.4%. Capitol Federal Financial pays out 60.7% of its earnings in the form of a dividend.

Risk and Volatility

AMB Financial has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Valuation and Earnings

This table compares AMB Financial and Capitol Federal Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMB Financial	$18.97 million	1.57	$2.19 million	N/A	N/A
Capitol Federal Financial	$420.24 million	2.37	$68.03 million	$0.56	13.71

Capitol Federal Financial has higher revenue and earnings than AMB Financial.

Profitability

This table compares AMB Financial and Capitol Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMB Financial	N/A	N/A	N/A
Capitol Federal Financial	16.98%	6.99%	0.75%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AMB Financial and Capitol Federal Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMB Financial	0	0	0	0	0.00
Capitol Federal Financial	0	4	0	0	2.00

Capitol Federal Financial has a consensus target price of $7.25, indicating a potential downside of 5.60%. Given Capitol Federal Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Capitol Federal Financial is more favorable than AMB Financial.

Summary

Capitol Federal Financial beats AMB Financial on 11 of the 13 factors compared between the two stocks.

About AMB Financial

AMB Financial Corp. operates as the bank holding company for American Community Bank of Indiana that provides financial services to customers in Indiana. The company provides savings, checking, health savings, individual retirement, and money market deposit accounts, as well as certificates of deposit. It offers business checking accounts, business debit and credit cards, and order business checks. In addition, the company offers mortgage loans, home equity loans, construction/lot loans, community loans, vehicle loans, and loan servicing; and commercial loans, commercial real estate loans, and SBA loans. Further, it provides merchant, remote deposit, wire services, fraud protection, and ACH origination; sweep services, zero balance accounts, lockbox services, vault services, and wealth management services; online, mobile, voice, and banking services; money order and e-statement services; cashier’s checks; and safe deposit boxes. The company was founded in 1910 and is headquartered in Saint John, Indiana.

About Capitol Federal Financial

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 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, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. 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.