Analyzing Oconee Federal Financial (NASDAQ:OFED) and Territorial Bancorp (NASDAQ:TBNK)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Oconee Federal Financial and Territorial Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oconee Federal Financial 0 0 0 0 N/A
Territorial Bancorp 0 2 0 0 2.00

Territorial Bancorp has a consensus target price of $32.00, indicating a potential upside of 6.84%. Given Territorial Bancorp’s higher probable upside, analysts plainly believe Territorial Bancorp is more favorable than Oconee Federal Financial.

Institutional and Insider Ownership

4.1% of Oconee Federal Financial shares are held by institutional investors. Comparatively, 45.7% of Territorial Bancorp shares are held by institutional investors. 5.2% of Oconee Federal Financial shares are held by company insiders. Comparatively, 10.8% of Territorial Bancorp shares are held by company 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 Territorial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oconee Federal Financial 18.60% 4.30% 0.73%
Territorial Bancorp 26.26% 8.86% 1.02%

Volatility & Risk

Oconee Federal Financial has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Territorial Bancorp has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares Oconee Federal Financial and Territorial Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oconee Federal Financial $18.41 million 7.40 $3.03 million N/A N/A
Territorial Bancorp $76.46 million 3.78 $19.21 million $2.03 14.75

Territorial Bancorp has higher revenue and earnings than Oconee Federal Financial.

Dividends

Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Territorial Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Territorial Bancorp pays out 43.3% of its earnings in the form of a dividend. Territorial Bancorp has raised its dividend for 6 consecutive years. Territorial Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Territorial Bancorp beats Oconee Federal Financial on 11 of the 14 factors compared between the two stocks.

Oconee Federal Financial Company Profile

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 County area of northwestern South Carolina and the northeast area of Georgia. The company's deposit products include demand, NOW, money market, savings, certificates of deposit, and individual retirement accounts. Its loan portfolio comprises one-to-four family residential mortgage loans; home equity loans and lines of credit; nonresidential real estate loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer loans. Oconee Federal Financial Corp. operates through its executive office and seven branch offices located in Oconee County, South Carolina; Stephens County, Georgia; and Rabun County, Georgia. The company was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. is a subsidiary of Oconee Federal, MHC.

Territorial Bancorp Company Profile

Territorial Bancorp, Inc. operates as the bank holding company for Territorial Savings Bank, which provides financial services to individuals, families, and businesses in Hawaii. Its business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in one- to four-family residential mortgage loans and investment securities. The firm operates through the following portfolio segments: Residential Mortgage; Construction, Commercial and Other Mortgage Loans; Home Equity Loans and Lines of Credit; and Consumer and Other. It also offers deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial, and regular checking accounts. The company was founded on November 3, 2008 and is headquartered in Honolulu, HI.

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