Contrasting Riverview Bancorp (NASDAQ:RVSB) and TFS Financial (NASDAQ:TFSL)
Riverview Bancorp (NASDAQ:RVSB – Get Rating) and TFS Financial (NASDAQ:TFSL – Get Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
profitability
This table compares Riverview Bancorp and TFS Financial’s net margins, return on equity and return on assets.
| net margins | return on equity | return on assets | |
| Riverview Bancorp | 34.87% | 13.64% | 1.30% |
| TFS Financial | 15.97% | 3.72% | 0.46% |
Earnings & Valuation
This table compares Riverview Bancorp and TFS Financial’s revenue, earnings per share and valuation.
| Gross revenue | Price/sales ratio | Net Income | Earnings Per Share | Price/earnings ratio | |
| Riverview Bancorp | $62.57 million | 2.33 | $10.47million | $0.99 | 6.65 |
| TFS Financial | $444.65 million | 8.97 | $81.01 million | $0.24 | 59.21 |
TFS Financial has higher revenue and earnings than Riverview Bancorp. Riverview Bancorp is trading at a lower price-to-earnings ratio than TFS Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Riverview Bancorp and TFS Financial, as reported by MarketBeat.
| sell ratings | hold ratings | Buy rating | Strong Buy Ratings | rating score | |
| Riverview Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| TFS Financial | 0 | 0 | 0 | 0 | N / A |
Riverview Bancorp currently has a consensus price target of $8.00, suggesting a potential upside of 21.58%. Given Riverview Bancorp’s higher possible upside, analysts clearly believe Riverview Bancorp is more favorable than TFS Financial.
Institutional & insider ownership
63.0% of Riverview Bancorp shares are owned by institutional investors. Comparatively, 8.8% of TFS Financial shares are owned by institutional investors. 6.8% of Riverview Bancorp shares are owned by company insiders. Comparatively, 1.3% of TFS Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
dividends
Riverview Bancorp pays an annual dividend of $0.22 per share and has a dividend yield of 3.3%. TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 8.0%. Riverview Bancorp pays out 22.2% of its earnings in the form of a dividend. TFS Financial pays out 470.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Riverview Bancorp has increased its dividend for 1 consecutive years and TFS Financial has increased its dividend for 7 consecutive years. TFS Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Riverview Bancorp has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, TFS Financial has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Summary
Riverview Bancorp beats TFS Financial on 10 of the 16 factors compared between the two stocks.
About Riverview Bancorp (Get Rating)
Riverview Bancorp, Inc. operates as the savings and loan holding company for Riverview Community Bank that provides commercial banking services to small and medium size businesses, professionals, and wealth building individuals. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial and residential real estate, multi-family real estate, land, and real estate construction loans; and consumer loans, such as one-to-four family mortgage loans, home equity lines of credit, land loans, and other secured and unsecured consumer loans. In addition, it is involved in the provision of mortgage brokerage and mortgage loan servicing activities, as well as offers asset management services comprising trust, estate planning, and investment management. The company operates through a network of 17 branch offices in Camas, Washougal, Stevenson, White Salmon, Battle Ground, Goldendale, and Vancouver, Washington; and Portland, Gresham, Tualatin, and Aumsville, Oregon. Riverview Bancorp, Inc. was founded in 1923 and is based in Vancouver, Washington.
About TFS Financial (Get Rating)
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 37 full-service branches and 7 loan production offices located throughout the states of Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation operates as a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.
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