Analyzing Clifton Bancorp (CSBK) and OceanFirst Financial (OCFC)

Clifton Bancorp (NASDAQ: CSBK) and OceanFirst Financial (NASDAQ:OCFC) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Volatility & Risk

Clifton Bancorp has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, OceanFirst Financial has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Clifton Bancorp 9.23% 2.44% 0.46%
OceanFirst Financial 15.23% 9.04% 1.07%

Institutional and Insider Ownership

58.7% of Clifton Bancorp shares are held by institutional investors. Comparatively, 71.3% of OceanFirst Financial shares are held by institutional investors. 6.3% of Clifton Bancorp shares are held by insiders. Comparatively, 3.8% of OceanFirst Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Clifton Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. OceanFirst Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. OceanFirst Financial pays out 35.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Clifton Bancorp and OceanFirst Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clifton Bancorp $42.39 million 8.16 $4.72 million N/A N/A
OceanFirst Financial $215.90 million 6.39 $42.47 million $1.70 16.86

OceanFirst Financial has higher revenue and earnings than Clifton Bancorp.

Analyst Ratings

This is a summary of current ratings and target prices for Clifton Bancorp and OceanFirst Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clifton Bancorp 0 0 1 0 3.00
OceanFirst Financial 0 0 5 0 3.00

Clifton Bancorp presently has a consensus price target of $17.00, suggesting a potential upside of 8.63%. OceanFirst Financial has a consensus price target of $32.20, suggesting a potential upside of 12.31%. Given OceanFirst Financial’s higher possible upside, analysts plainly believe OceanFirst Financial is more favorable than Clifton Bancorp.

Summary

OceanFirst Financial beats Clifton Bancorp on 10 of the 14 factors compared between the two stocks.

About Clifton Bancorp

Clifton Bancorp Inc, formerly Clifton Savings Bancorp, Inc., is a savings and loan holding company that operates through its subsidiary, Clifton Savings Bank (Clifton Savings). Clifton Savings is a federally chartered savings bank. Clifton Savings operate as a community-oriented financial institution offering traditional financial services to consumers and businesses in the market area. It attracts deposits from the general public and uses those funds to originate one- to four-family, multi-family and commercial real estate, and consumer loans, which it holds for investment. Clifton Savings has one wholly owned subsidiary, Botany Inc., an investment company. In addition to the main office located in Passaic County, Clifton Savings operates 11 branch offices in Bergen and Passaic Counties, which, along with Essex, Morris, Hudson and Union Counties are its primary market area.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the holding company for OceanFirst Bank N.A. that provides a range of community banking services. The company offers various deposit products to retail, government, and business customers, including money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits. It also provides commercial real estate, multi-family mortgage, and land loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; consumer loans, such as home equity loans and lines of credit, overdraft line of credit, loans on savings accounts, and other consumer loans; and commercial and industrial loans, and lines of credit. In addition, the company invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, it offers bankcard and wealth management services; and sells alternative investment products and life insurance products. The company operates through an administrative/branch office located in Toms River, New Jersey; and 45 additional branch offices and 3 deposit production facilities in central and southern New Jersey, as well as operates a wealth management office in Ocean County, and commercial loan production offices in the Philadelphia area and Atlantic, Cape May, and Mercer Counties in New Jersey. OceanFirst Financial Corp. was founded in 1902 and is based in Toms River, New Jersey.

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