Financial Analysis: Flagstar Bank, National Association (NYSE:FLG) and JSB Financial (OTCMKTS:JFWV)

JSB Financial (OTCMKTS:JFWV) and Flagstar Bank, National Association (NYSE:FLG) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for JSB Financial and Flagstar Bank, National Association, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JSB Financial	0	0	0	0	0.00
Flagstar Bank, National Association	2	7	5	0	2.21

Flagstar Bank, National Association has a consensus price target of $14.46, suggesting a potential upside of 6.96%. Given Flagstar Bank, National Association’s stronger consensus rating and higher probable upside, analysts plainly believe Flagstar Bank, National Association is more favorable than JSB Financial.

Profitability

This table compares JSB Financial and Flagstar Bank, National Association’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSB Financial	N/A	N/A	N/A
Flagstar Bank, National Association	-3.68%	-1.60%	-0.13%

Dividends

JSB Financial pays an annual dividend of $2.70 per share and has a dividend yield of 2.1%. Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. JSB Financial pays out 16.7% of its earnings in the form of a dividend. Flagstar Bank, National Association pays out -7.8% 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.

Risk and Volatility

JSB Financial has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Flagstar Bank, National Association has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of JSB Financial shares are owned by institutional investors. Comparatively, 67.9% of Flagstar Bank, National Association shares are owned by institutional investors. 6.4% of Flagstar Bank, National Association shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares JSB Financial and Flagstar Bank, National Association”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSB Financial	N/A	N/A	$4.20 million	$16.17	8.04
Flagstar Bank, National Association	$4.81 billion	1.17	-$177.00 million	($0.51)	-26.51

JSB Financial has higher earnings, but lower revenue than Flagstar Bank, National Association. Flagstar Bank, National Association is trading at a lower price-to-earnings ratio than JSB Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Flagstar Bank, National Association beats JSB Financial on 8 of the 15 factors compared between the two stocks.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.