Critical Contrast: Capitol Federal Financial (NASDAQ:CFFN) and Oconee Federal Financial (NASDAQ:OFED)

Oconee Federal Financial (NASDAQ:OFED) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Valuation & Earnings

This table compares Oconee Federal Financial and Capitol Federal Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oconee Federal Financial	$30.77 million	2.56	$6.26 million	$1.18	11.44
Capitol Federal Financial	$382.09 million	2.39	$38.01 million	$0.29	23.76

Capitol Federal Financial has higher revenue and earnings than Oconee Federal Financial. Oconee Federal Financial is trading at a lower price-to-earnings ratio than Capitol Federal Financial, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Oconee Federal Financial has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Oconee Federal Financial and Capitol Federal Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oconee Federal Financial	0	0	0	0	0.00
Capitol Federal Financial	0	2	0	0	2.00

Capitol Federal Financial has a consensus target price of $6.75, suggesting a potential downside of 2.03%. Given Capitol Federal Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Capitol Federal Financial is more favorable than Oconee Federal Financial.

Institutional and Insider Ownership

88.5% of Capitol Federal Financial shares are held by institutional investors. 5.1% of Oconee Federal Financial shares are held by insiders. Comparatively, 2.2% of Capitol Federal Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Oconee Federal Financial and Capitol Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oconee Federal Financial	N/A	N/A	N/A
Capitol Federal Financial	9.95%	4.69%	0.50%

Dividends

Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 4.9%. Oconee Federal Financial pays out 33.9% of its earnings in the form of a dividend. Capitol Federal Financial pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Capitol Federal Financial beats Oconee Federal Financial on 11 of the 15 factors compared between the two stocks.

About Oconee Federal Financial

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee and Pickens County areas of northwestern South Carolina, and the northeast area of Georgia in Stephens County and Rabun County. It offers deposit products, including demand, money market, NOW, savings, and individual retirement accounts, as well as certificates of deposit. The company’s loan portfolio comprises one-to-four family residential and multi-family real estate loans; home equity loans and lines of credit; nonresidential real estate loans; mortgage loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans, such as installment loans for various consumer purposes, including the purchase of automobiles, boats, and other legitimate personal purposes. Oconee Federal Financial Corp. was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. operates as a subsidiary of Oconee Federal, MHC.

About Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.