Contrasting BofI (BOFI) & Territorial Bancorp (TBNK)

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BofI (NASDAQ: BOFI) and Territorial Bancorp (NASDAQ:TBNK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Valuation & Earnings

This table compares BofI and Territorial Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BofI $546.02 million 4.27 $134.74 million $2.48 15.04
Territorial Bancorp $72.18 million 4.08 $14.96 million $1.78 16.98

BofI has higher revenue and earnings than Territorial Bancorp. BofI is trading at a lower price-to-earnings ratio than Territorial Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

BofI has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Territorial Bancorp has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Dividends

Territorial Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. BofI does not pay a dividend. Territorial Bancorp pays out 49.4% of its earnings in the form of a dividend. Territorial Bancorp has raised its dividend for 5 consecutive years.

Insider and Institutional Ownership

76.4% of BofI shares are held by institutional investors. Comparatively, 44.8% of Territorial Bancorp shares are held by institutional investors. 6.2% of BofI shares are held by insiders. Comparatively, 13.1% of Territorial Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for BofI and Territorial Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BofI 0 2 8 0 2.80
Territorial Bancorp 0 2 0 0 2.00

BofI presently has a consensus target price of $41.33, indicating a potential upside of 10.78%. Territorial Bancorp has a consensus target price of $32.00, indicating a potential upside of 5.86%. Given BofI’s stronger consensus rating and higher probable upside, equities research analysts plainly believe BofI is more favorable than Territorial Bancorp.

Profitability

This table compares BofI and Territorial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BofI 27.87% 17.79% 1.73%
Territorial Bancorp 21.63% 7.74% 0.90%

Summary

BofI beats Territorial Bancorp on 12 of the 17 factors compared between the two stocks.

BofI Company Profile

BofI Holding, Inc. operates as the holding company for BofI Federal Bank that provides consumer and business banking products in the United States. The company offers deposits products, including consumer and business checking, demand, savings, and time deposit accounts. It also provides single family and multifamily mortgage secured lending products; commercial real estate secured and commercial lending products; specialty finance factoring products; and consumer lending products consisting of prime loans to purchase new and used automobiles and recreational vehicles, as well as deposit-related overdraft lines of credit. In addition, the company offers prepaid card and refund transfer, debit card or ATM card, portfolio management, online bill payment, money transfer, overdraft protection, mobile banking, and text message banking services. BofI Holding, Inc. was incorporated in 1999 and is based in San Diego, California.

Territorial Bancorp Company Profile

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that provides various financial services to individuals, families, and businesses. The company offers a range of deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial and regular checking accounts, and NOW accounts. It also provides various loan products comprising one- to four-family residential mortgage loans; home equity loans and lines of credit; construction, commercial, and other non-residential real estate loans; consumer loans; multi-family mortgage loans; commercial business loans; and other loans, as well as offers investment securities. In addition, the company, through its subsidiary, Territorial Financial Services, Inc. engages in insurance agency activities. Further, it provides various non-deposit investments, including annuities and mutual funds through a third-party broker-dealer. The company operates through a network of 29 full-service branches located in the State of Hawaii. Territorial Bancorp Inc. was founded in 1921 and is based in Honolulu, Hawaii.

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