People’s United Financial (NASDAQ: PBCT) and Capitol Federal Financial (NASDAQ:CFFN) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Risk and Volatility
Get People’s United Financial alerts:
People’s United Financial has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Insider & Institutional Ownership
77.7% of People’s United Financial shares are owned by institutional investors. Comparatively, 74.6% of Capitol Federal Financial shares are owned by institutional investors. 2.5% of People’s United Financial shares are owned by insiders. Comparatively, 2.2% of Capitol Federal Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
People’s United Financial pays an annual dividend of $0.70 per share and has a dividend yield of 3.8%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.6%. People’s United Financial pays out 67.3% of its earnings in the form of a dividend. People’s United Financial has raised its dividend for 11 consecutive years. People’s United Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares People’s United Financial and Capitol Federal Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|People’s United Financial||23.24%||7.57%||0.95%|
|Capitol Federal Financial||28.26%||6.66%||1.00%|
Valuation and Earnings
This table compares People’s United 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|
|People’s United Financial||$1.66 billion||3.91||$337.20 million||$1.04||17.88|
|Capitol Federal Financial||$335.38 million||5.42||$84.13 million||N/A||N/A|
People’s United Financial has higher revenue and earnings than Capitol Federal Financial.
This is a summary of recent recommendations and price targets for People’s United Financial and Capitol Federal Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|People’s United Financial||1||4||2||0||2.14|
|Capitol Federal Financial||0||2||0||0||2.00|
People’s United Financial presently has a consensus target price of $20.07, indicating a potential upside of 7.91%. Capitol Federal Financial has a consensus target price of $13.75, indicating a potential upside of 4.56%. Given People’s United Financial’s stronger consensus rating and higher possible upside, analysts clearly believe People’s United Financial is more favorable than Capitol Federal Financial.
People’s United Financial beats Capitol Federal Financial on 11 of the 16 factors compared between the two stocks.
People’s United Financial Company Profile
People's United Financial, Inc. operates as the bank holding company for People's United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The company operates in two segments, Commercial Banking and Retail Banking. The Commercial Banking segment offers commercial real estate lending, commercial and industrial lending, and commercial deposit gathering services. This segment also provides equipment financing; cash management, correspondent banking, and municipal banking services; and institutional trust, corporate trust, private banking, and insurance services. The Retail Banking segment offers consumer lending, including residential mortgage and home equity lending; and consumer deposit gathering services. This segment also provides brokerage, financial advisory, investment management, life insurance, and non-institutional trust services. In addition, the company offers online banking, investment trading, and telephone banking services. It operates through a network of 403 branches, including 147 full-service stop and shop supermarket branches located in Connecticut, southeastern New York, Massachusetts, Vermont, Maine, and New Hampshire, as well as 598 ATMs. People's United Financial, Inc. was founded in 1842 and is headquartered in Bridgeport, Connecticut.
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.