Auburn National Bancorporation (NASDAQ:AUBN) vs. WaFd (NASDAQ:WAFD) Critical Survey

WaFd (NASDAQ:WAFD) and Auburn National Bancorporation (NASDAQ:AUBN) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Dividends

WaFd pays an annual dividend of $1.08 per share and has a dividend yield of 3.2%. Auburn National Bancorporation pays an annual dividend of $1.08 per share and has a dividend yield of 4.1%. WaFd pays out 34.1% of its earnings in the form of a dividend. Auburn National Bancorporation pays out 44.8% 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. WaFd has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares WaFd and Auburn National Bancorporation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WaFd	$782.48 million	3.24	$226.07 million	$3.17	10.81
Auburn National Bancorporation	$43.89 million	2.09	$7.26 million	$2.41	10.95

WaFd has higher revenue and earnings than Auburn National Bancorporation. WaFd is trading at a lower price-to-earnings ratio than Auburn National Bancorporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WaFd and Auburn National Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WaFd	18.47%	8.98%	0.89%
Auburn National Bancorporation	18.60%	9.10%	0.81%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WaFd and Auburn National Bancorporation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WaFd	0	4	1	0	2.20
Auburn National Bancorporation	0	1	0	0	2.00

WaFd currently has a consensus price target of $37.00, suggesting a potential upside of 7.93%. Given WaFd’s stronger consensus rating and higher probable upside, equities research analysts clearly believe WaFd is more favorable than Auburn National Bancorporation.

Volatility & Risk

WaFd has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Auburn National Bancorporation has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Insider & Institutional Ownership

83.7% of WaFd shares are owned by institutional investors. Comparatively, 39.5% of Auburn National Bancorporation shares are owned by institutional investors. 1.5% of WaFd shares are owned by company insiders. Comparatively, 18.7% of Auburn National Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

WaFd beats Auburn National Bancorporation on 12 of the 17 factors compared between the two stocks.

About WaFd

WaFd, Inc operates as the bank holding company for Washington Federal Bank that provides lending, depository, insurance, and other banking services in the United States. The company offers deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts. It also provides single-family dwellings, construction, land acquisition and development, consumer lot, multi-family residential, commercial real estate, home equity, business, and consumer loans, as well as commercial and industrial loans. In addition, the company offers insurance brokerage services, such as individual and business insurance policies; holds and markets real estate properties; and debit and credit cards, as well as acts as the trustee. It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate. The company was formerly known as Washington Federal, Inc. and changed its name to WaFd, Inc in September 2023. WaFd, Inc was founded in 1917 and is headquartered in Seattle, Washington.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.