Contrasting Sound Financial Bancorp (NASDAQ:SFBC) & First Savings Financial Group (NASDAQ:FSFG)

Sound Financial Bancorp (NASDAQ:SFBC) and First Savings Financial Group (NASDAQ:FSFG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility & Risk

Sound Financial Bancorp has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, First Savings Financial Group has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sound Financial Bancorp and First Savings Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sound Financial Bancorp $42.38 million 2.74 $8.94 million N/A N/A
First Savings Financial Group $191.05 million 1.03 $33.35 million $14.04 5.93

First Savings Financial Group has higher revenue and earnings than Sound Financial Bancorp.

Dividends

Sound Financial Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. First Savings Financial Group pays an annual dividend of $1.44 per share and has a dividend yield of 1.7%. First Savings Financial Group pays out 10.3% of its earnings in the form of a dividend. Sound Financial Bancorp has raised its dividend for 1 consecutive years and First Savings Financial Group has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sound Financial Bancorp and First Savings Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sound Financial Bancorp 0 0 0 0 N/A
First Savings Financial Group 0 0 1 0 3.00

First Savings Financial Group has a consensus price target of $77.50, indicating a potential downside of 6.85%. Given First Savings Financial Group’s higher probable upside, analysts clearly believe First Savings Financial Group is more favorable than Sound Financial Bancorp.

Profitability

This table compares Sound Financial Bancorp and First Savings Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sound Financial Bancorp 24.17% 12.21% 1.17%
First Savings Financial Group 17.66% 23.65% 2.23%

Insider and Institutional Ownership

44.3% of Sound Financial Bancorp shares are owned by institutional investors. Comparatively, 24.9% of First Savings Financial Group shares are owned by institutional investors. 12.1% of Sound Financial Bancorp shares are owned by company insiders. Comparatively, 14.1% of First Savings Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

First Savings Financial Group beats Sound Financial Bancorp on 8 of the 14 factors compared between the two stocks.

Sound Financial Bancorp Company Profile

Sound Financial Bancorp, Inc. is a bank holding company, which engages in the provision of traditional banking and other financial services. It involves in attracting retail and commercial deposits from the general public and local governments and investing those funds, along with borrowed funds, in loans secured by first and second mortgages on one- to four-family residences, commercial and multifamily real estate, construction and land, consumer, and commercial business loans. The company was founded in 2008 and is headquartered in Seattle, WA.

First Savings Financial Group Company Profile

First Savings Financial Group, Inc. operates as a savings and loans holding company for First Savings Bank FSB, a federally chartered savings bank. The firm operates as a community-oriented financial institution offering traditional financial services to consumers and businesses in its primary market area. It operates through the following segments: Core Banking, SBA Lending, and Mortgage Banking. The Core Banking segment engages in residential, commercial and consumer loans. The SBA Lending segment focuses on net gains on sales of loans and net interest income as its primary sources of revenue. The Mortgage Banking segment originates residential mortgage loans and sells it in the secondary market. The company was founded in May 2008 and is headquartered in Jeffersonville, IN.

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