Capitol Federal Financial (NASDAQ: CFFN) and Northrim BanCorp (NASDAQ:NRIM) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
This is a breakdown of current recommendations and price targets for Capitol Federal Financial and Northrim BanCorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capitol Federal Financial||0||2||0||0||2.00|
Valuation and Earnings
This table compares Capitol Federal Financial and Northrim BanCorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capitol Federal Financial||$335.38 million||5.30||$84.13 million||N/A||N/A|
|Northrim BanCorp||$100.58 million||2.57||$13.15 million||$2.04||18.46|
Capitol Federal Financial has higher revenue and earnings than Northrim BanCorp.
Institutional & Insider Ownership
74.5% of Capitol Federal Financial shares are held by institutional investors. Comparatively, 70.7% of Northrim BanCorp shares are held by institutional investors. 2.2% of Capitol Federal Financial shares are held by company insiders. Comparatively, 2.8% of Northrim BanCorp shares are held by company 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.
Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.6%. Northrim BanCorp pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. Northrim BanCorp pays out 47.1% of its earnings in the form of a dividend.
This table compares Capitol Federal Financial and Northrim BanCorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capitol Federal Financial||28.17%||6.59%||0.98%|
Risk and Volatility
Capitol Federal Financial has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Capitol Federal Financial beats Northrim BanCorp on 9 of the 13 factors compared between the two stocks.
Capitol Federal Financial Company Profile
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 comprising savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposits. It also provides various loan products, such as one- to four-family residential real estate loans; construction-to-permanent loans; consumer loans comprising home equity loans and lines of credit, home improvement loans, auto loans, and loans secured by savings deposits; and commercial real estate loans consisting of various property types, including hotels, office and retail buildings, senior housing facilities, and multi-family dwellings located in Texas, Missouri, Kansas, Nebraska, Colorado, Arkansas, California, and Montana. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; and invests in various securities. It operates a network of 47 branches, which include 37 traditional branches and 10 in-store branches located in 9 counties throughout Kansas and 3 counties in Missouri. The company was founded in 1893 and is headquartered in Topeka, Kansas.
Northrim BanCorp Company Profile
Northrim BanCorp, Inc. is a bank holding company. The Company operates in two segments: Community Banking and Home Mortgage Lending. The Community Banking segment’s principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. The Community Banking segment operates approximately 10 branches throughout Alaska. The Home Mortgage Lending segment’s principal business focus is the origination and sale of mortgage loans for one- to four-family residential properties. Its loan products include short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans. Its commercial loan portfolio includes both secured and unsecured loans for working capital and expansion. It provides construction lending for commercial real estate projects. It offers personal loans for automobiles, recreational vehicles, boats, and other larger consumer purchases.
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