Comparing Chester Bancorp (OTCMKTS:CNBA) & TFS Financial (NASDAQ:TFSL)

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

Volatility and Risk

TFS Financial has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Chester Bancorp has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

Institutional & Insider Ownership

9.8% of TFS Financial shares are held by institutional investors. 1.1% of TFS Financial shares are held by company insiders. Comparatively, 38.8% of Chester Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TFS Financial	10.49%	4.20%	0.47%
Chester Bancorp	N/A	N/A	N/A

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 7.8%. Chester Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 13.3%. TFS Financial pays out 418.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares TFS Financial and Chester Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFS Financial	$758.78 million	5.37	$79.59 million	$0.27	53.78
Chester Bancorp	N/A	N/A	N/A	N/A	N/A

TFS Financial has higher revenue and earnings than Chester Bancorp.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TFS Financial and Chester Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFS Financial	0	2	0	0	2.00
Chester Bancorp	0	0	0	0	0.00

TFS Financial currently has a consensus target price of $14.50, indicating a potential downside of 0.14%. Given TFS Financial’s stronger consensus rating and higher probable upside, analysts clearly believe TFS Financial is more favorable than Chester Bancorp.

Summary

TFS Financial beats Chester Bancorp on 8 of the 11 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 Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, Illinois.