TFS Financial (NASDAQ:TFSL – Get Free Report) and Northpointe Bancshares (NYSE:NPB – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Volatility & Risk
TFS Financial has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Northpointe Bancshares has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.
Dividends
TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 6.5%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. TFS Financial pays out 342.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northpointe Bancshares pays out 4.5% of its earnings in the form of a dividend.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TFS Financial | $791.96 million | 6.19 | $90.96 million | $0.33 | 53.00 |
| Northpointe Bancshares | $471.18 million | 1.38 | $83.41 million | $2.22 | 8.49 |
TFS Financial has higher revenue and earnings than Northpointe Bancshares. Northpointe Bancshares is trading at a lower price-to-earnings ratio than TFS Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for TFS Financial and Northpointe Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TFS Financial | 0 | 3 | 1 | 0 | 2.25 |
| Northpointe Bancshares | 1 | 2 | 1 | 0 | 2.00 |
TFS Financial presently has a consensus price target of $15.50, indicating a potential downside of 11.38%. Northpointe Bancshares has a consensus price target of $19.83, indicating a potential upside of 5.26%. Given Northpointe Bancshares’ higher possible upside, analysts plainly believe Northpointe Bancshares is more favorable than TFS Financial.
Profitability
This table compares TFS Financial and Northpointe Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TFS Financial | 11.42% | 4.89% | 0.53% |
| Northpointe Bancshares | 17.92% | 14.80% | 1.28% |
Institutional & Insider Ownership
9.8% of TFS Financial shares are held by institutional investors. 0.7% of TFS Financial shares are held by company insiders. Comparatively, 18.3% of Northpointe Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
TFS Financial beats Northpointe Bancshares on 8 of the 15 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, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. 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 offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and multiple full-service branches and loan production offices located throughout the states of Ohio and Florida. TFS Financial Corporation 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 Northpointe Bancshares
Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.
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