TFS Financial (NASDAQ: MLVF) and Malvern Bancorp (NASDAQ:MLVF) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TFS Financial and Malvern Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TFS Financial 0 0 0 0 N/A
Malvern Bancorp 0 1 0 0 2.00

Malvern Bancorp has a consensus price target of $28.00, suggesting a potential upside of 13.82%. Given Malvern Bancorp’s higher possible upside, analysts plainly believe Malvern Bancorp is more favorable than TFS Financial.

Insider and Institutional Ownership

13.1% of TFS Financial shares are held by institutional investors. Comparatively, 60.7% of Malvern Bancorp shares are held by institutional investors. 1.6% of TFS Financial shares are held by company insiders. Comparatively, 3.7% of Malvern Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares TFS Financial and Malvern Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TFS Financial 19.03% 5.33% 0.66%
Malvern Bancorp 15.63% 7.56% 0.75%

Volatility & Risk

TFS Financial has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Malvern Bancorp has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Dividends

TFS Financial pays an annual dividend of $0.68 per share and has a dividend yield of 4.4%. Malvern Bancorp does not pay a dividend. TFS Financial pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares TFS Financial and Malvern Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TFS Financial $428.84 million 10.04 $88.87 million $0.32 48.00
Malvern Bancorp $36.12 million 4.48 $5.81 million N/A N/A

TFS Financial has higher revenue and earnings than Malvern Bancorp.

Summary

TFS Financial beats Malvern Bancorp on 7 of the 13 factors compared between the two stocks.

About TFS Financial

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings accounts, checking accounts, certificate of deposit accounts, individual retirement accounts, and other qualified plan accounts. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it engages in the net lease transactions of commercial buildings; provision of escrow and settlement services. The company offers its products and services through its main office in Cleveland, Ohio; and 38 full-service branches and 8 loan production offices located throughout the states of Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

About Malvern Bancorp

Malvern Bancorp, Inc. operates as the holding company for Malvern Federal Savings Bank that provides various banking products and services to consumer and business customers in Pennsylvania. The company offers checking accounts, retirement accounts, money market accounts, time and savings accounts, interest and non-interest bearing accounts, NOW accounts, and CDARS/ICS reciprocal deposits; and debit and credit card, wire transfer, automated teller, Internet banking, ACH origination, safe deposit box, telephone banking, and mobile banking services. It also provides residential mortgage loans, such as one class and one-to four-family first lien residential mortgage loans; residential and commercial construction loans, and land loans; commercial loans, including commercial real estate loans, multi-family real estate loans, industrial loans, and commercial business loans; and consumer loans, such as home equity lines of credit, second mortgage loans, and unsecured consumer lines of credit. In addition, the company offers liquidity management, investment, custody, wealth planning, trust and fiduciary, insurance, and 401k services to high net worth individuals and families. Further, it provides remote deposit capture banking for business customers; and mobile remote deposit capture banking for retail and business customers. As of September 30, 2017, the company owns and maintains its headquarters and six full-service financial centers; leases financial centers in Glen Mills and Villanova, Pennsylvania; a private banking office in Morristown, New Jersey; and leases representative offices in Montchanin, Delaware, and Palm Beach, Florida. Malvern Bancorp, Inc. was founded in 1887 and is headquartered in Paoli, Pennsylvania.

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