SR Bancorp (NASDAQ:SRBK) versus Flagstar Financial (NYSE:FLG) Financial Review

SR Bancorp (NASDAQ:SRBK) and Flagstar Financial (NYSE:FLG) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Valuation & Earnings

This table compares SR Bancorp and Flagstar Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$30.62 million	3.75	-$10.86 million	$0.12	101.42
Flagstar Financial	$2.93 billion	1.28	-$79.00 million	($4.36)	-2.08

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

Insider and Institutional Ownership

24.7% of SR Bancorp shares are held by institutional investors. Comparatively, 67.9% of Flagstar Financial shares are held by institutional investors. 3.6% of SR Bancorp shares are held by company insiders. Comparatively, 6.4% of Flagstar Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SR Bancorp has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Flagstar Financial has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for SR Bancorp and Flagstar Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	0	0	0	0.00
Flagstar Financial	0	2	0	0	2.00

Flagstar Financial has a consensus price target of $11.75, indicating a potential upside of 29.83%. Given Flagstar Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Flagstar Financial is more favorable than SR Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	2.25%	0.50%	0.10%
Flagstar Financial	-18.40%	-11.35%	-0.78%

Summary

SR Bancorp beats Flagstar Financial on 8 of the 13 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

About Flagstar Financial

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.