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 businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Volatility and Risk
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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 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%|
Earnings and Valuation
This table compares Capitol Federal Financial and Northrim BanCorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capitol Federal Financial||$335.38 million||5.40||$84.13 million||N/A||N/A|
|Northrim BanCorp||$100.58 million||2.65||$13.15 million||$2.04||19.04|
Capitol Federal Financial has higher revenue and earnings than Northrim BanCorp.
This is a breakdown of recent ratings 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|
Capitol Federal Financial presently has a consensus price target of $13.75, suggesting a potential upside of 4.96%. Given Capitol Federal Financial’s higher probable upside, equities analysts clearly believe Capitol Federal Financial is more favorable than Northrim BanCorp.
Insider & Institutional Ownership
74.5% of Capitol Federal Financial shares are owned by institutional investors. Comparatively, 70.7% of Northrim BanCorp shares are owned by institutional investors. 2.2% of Capitol Federal Financial shares are owned by insiders. Comparatively, 2.9% of Northrim BanCorp shares are owned 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.
Capitol Federal Financial beats Northrim BanCorp on 9 of the 13 factors compared between the two stocks.
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 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.
About Northrim BanCorp
Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professionals in Alaska. The company operates in two segments, Community Banking and Home Mortgage Lending. It offers various deposit products, including noninterest-bearing checking accounts and interest-bearing time deposits, checking accounts, and savings accounts, as well as money market deposit accounts, certificates of deposit, and courier noncash deposits. The company also provides family residential mortgages; commercial loans, such as secured and unsecured loans for working capital and expansion; commercial real estate loans; construction loans for commercial real estate projects, and land development and residential subdivision construction loans; and consumer loans comprising loans for automobiles, recreational vehicles, boats, and other consumer purchases, as well as home equity and commercial credit lines, and factoring services. In addition, it offers other services comprising consumer online banking, mobile app and mobile deposit, mobile Web and text banking, business online banking, personal finance, online documents, consumer and business debit cards, personalized checks at account opening, telebanking, automated teller, overdraft protection from a savings account, commercial drive-up banking, automatic transfers and payments, wire transfers, direct payroll deposit, electronic tax payments, automated clearing house origination and receipt, remote deposit capture, merchant, and cash management services, as well as annuity products, and long term investment portfolios. As of January 29, 2018, the company operated 14 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska.