Analyzing Washington Federal (NASDAQ:WAFD) and California First National Bancorp (NASDAQ:CFNB)

Washington Federal (NASDAQ:WAFD) and California First National Bancorp (OTCMKTS:CFNB) are both 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 Washington Federal and California First National Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Federal 0 1 0 0 2.00
California First National Bancorp 0 0 0 0 N/A

Washington Federal currently has a consensus target price of $34.00, indicating a potential downside of 3.79%. Given Washington Federal’s higher probable upside, equities research analysts plainly believe Washington Federal is more favorable than California First National Bancorp.

Profitability

This table compares Washington Federal and California First National Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Federal 29.19% 10.47% 1.29%
California First National Bancorp N/A 4.18% 2.35%

Dividends

Washington Federal pays an annual dividend of $0.84 per share and has a dividend yield of 2.4%. California First National Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. Washington Federal pays out 35.0% of its earnings in the form of a dividend. Washington Federal has raised its dividend for 5 consecutive years.

Valuation and Earnings

This table compares Washington Federal and California First National Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Washington Federal $651.16 million 4.31 $203.85 million $2.40 14.73
California First National Bancorp $24.60 million 7.79 $12.51 million N/A N/A

Washington Federal has higher revenue and earnings than California First National Bancorp.

Institutional and Insider Ownership

85.4% of Washington Federal shares are held by institutional investors. 1.2% of Washington Federal shares are held by company insiders. Comparatively, 78.5% of California First National 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.

Volatility & Risk

Washington Federal has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, California First National Bancorp has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Summary

Washington Federal beats California First National Bancorp on 8 of the 14 factors compared between the two stocks.

Washington Federal Company Profile

Washington Federal, Inc. operates as the bank holding company for Washington Federal, National Association that provides lending, depository, insurance, and other banking services in the United States. The company accepts deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts. It also provides single-family residential, construction, land acquisition and development, land consumer lot, multi-family residential, commercial and industrial, commercial real estate, home equity, business, and consumer loans. In addition, the company offers insurance brokerage services, such as individual and business insurance policies to customers and general public; holds and markets real estate properties; and acts as trustee. It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate. As of September 30, 2018, the company had 235 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, and Texas. Washington Federal, Inc. was founded in 1917 and is headquartered in Seattle, Washington.

California First National Bancorp Company Profile

California First National Bancorp operates as the bank holding company for California First National Bank that provides banking services in the United States. The company accepts interest-bearing checking, money market, and savings accounts, as well as certificates of deposit and IRA deposit products. It also provides commercial loan products, including lines of credit, term loans, and commercial mortgages; and syndicated loans. In addition, the company, through its subsidiary, California First Leasing Corp., leases and finances capital assets used by businesses and organizations comprising computer systems and networks, automated warehouse distribution management systems, and manufacturing production systems; retail point-of-sale and inventory tracking systems; telecommunications systems, including wireless networks, voice over Internet protocol systems, and satellite tracking systems; and other equipment, as well as non-electronic properties, such as office equipment, mining equipment, machine tools, school buses, trucks, exercise equipment, and office and dormitory furniture. It serves corporations and middle-market companies, private and state-related educational institutions, municipalities, and other not-for-profit organizations and institutions. California First National Bancorp was founded in 1977 and is headquartered in Irvine, California.

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