Capitol Federal Financial (NASDAQ:CFFN) vs. Oconee Federal Financial (NASDAQ:OFED) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of recent ratings for Capitol Federal Financial and Oconee Federal Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capitol Federal Financial	0	2	0	0	2.00
Oconee Federal Financial	0	0	0	0	0.00

Capitol Federal Financial presently has a consensus price target of $6.75, suggesting a potential downside of 1.32%. Given Capitol Federal Financial’s stronger consensus rating and higher possible upside, research analysts clearly believe Capitol Federal Financial is more favorable than Oconee Federal Financial.

Profitability

This table compares Capitol Federal Financial and Oconee Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capitol Federal Financial	9.95%	4.69%	0.50%
Oconee Federal Financial	N/A	N/A	N/A

Risk and Volatility

Capitol Federal Financial has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Oconee Federal Financial has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Dividends

Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 5.0%. Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Capitol Federal Financial pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oconee Federal Financial pays out 33.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

88.5% of Capitol Federal Financial shares are owned by institutional investors. 2.2% of Capitol Federal Financial shares are owned by insiders. Comparatively, 5.1% of Oconee Federal Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Capitol Federal Financial and Oconee Federal Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capitol Federal Financial	$382.09 million	2.38	$38.01 million	$0.29	23.59
Oconee Federal Financial	$30.77 million	2.56	$6.26 million	$1.18	11.43

Capitol Federal Financial has higher revenue and earnings than Oconee Federal Financial. Oconee Federal Financial is trading at a lower price-to-earnings ratio than Capitol Federal Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Capitol Federal Financial beats Oconee Federal Financial on 11 of the 15 factors compared between the two stocks.

About Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.

About Oconee Federal Financial

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 and Pickens County areas of northwestern South Carolina, and the northeast area of Georgia in Stephens County and Rabun County. It offers deposit products, including demand, money market, NOW, savings, and individual retirement accounts, as well as certificates of deposit. The company’s loan portfolio comprises one-to-four family residential and multi-family real estate loans; home equity loans and lines of credit; nonresidential real estate loans; mortgage loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans, such as installment loans for various consumer purposes, including the purchase of automobiles, boats, and other legitimate personal purposes. Oconee Federal Financial Corp. was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. operates as a subsidiary of Oconee Federal, MHC.