Analyzing Pathward Financial (CASH) and Its Peers

Pathward Financial (NASDAQ:CASH) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Pathward Financial to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Institutional and Insider Ownership

92.7% of Pathward Financial shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 1.4% of Pathward Financial shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Pathward Financial pays out 2.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend.

Risk & Volatility

Pathward Financial has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Pathward Financial’s rivals have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Pathward Financial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pathward Financial	21.11%	20.82%	2.40%
Pathward Financial Competitors	15.63%	9.41%	0.93%

Valuation and Earnings

This table compares Pathward Financial and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pathward Financial	$832.16 million	$175.67 million	9.23
Pathward Financial Competitors	$139.39 billion	$2.42 billion	21.36

Pathward Financial’s rivals have higher revenue and earnings than Pathward Financial. Pathward Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pathward Financial and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathward Financial	0	0	3	0	3.00
Pathward Financial Competitors	7494	30253	27859	1490	2.35

Pathward Financial currently has a consensus price target of $101.00, suggesting a potential upside of 34.40%. As a group, “Banks” companies have a potential upside of 14.18%. Given Pathward Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Pathward Financial is more favorable than its rivals.

Summary

Pathward Financial beats its rivals on 9 of the 15 factors compared.

About Pathward Financial

Pathward Financial, Inc. is a financial services holding company whose principal subsidiary is Pathward, National Association. Formerly known as Meta Financial Group, the company adopted the Pathward name in 2022; its bank subsidiary was also renamed as part of the rebranding. Pathward provides banking, payments and specialty finance services to consumers and businesses across the United States. Its offerings include deposit accounts, prepaid and payment solutions, and services that support tax refund disbursements.