TFS Financial (TFSL) vs. Charter Financial (CHFN) Head-To-Head Survey

Charter Financial (NASDAQ: CHFN) and TFS Financial (NASDAQ:TFSL) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Dividends

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Charter Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. TFS Financial pays an annual dividend of $0.68 per share and has a dividend yield of 4.5%. Charter Financial pays out 33.7% of its earnings in the form of a dividend. TFS Financial pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Charter Financial has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, TFS Financial has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Charter Financial and TFS Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Charter Financial 0 0 1 0 3.00
TFS Financial 0 1 0 0 2.00

Charter Financial currently has a consensus target price of $23.00, indicating a potential upside of 1.91%. TFS Financial has a consensus target price of $18.50, indicating a potential upside of 22.52%. Given TFS Financial’s higher probable upside, analysts plainly believe TFS Financial is more favorable than Charter Financial.

Earnings & Valuation

This table compares Charter Financial and TFS Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Charter Financial $75.10 million 4.55 $14.43 million $0.95 23.76
TFS Financial $428.84 million 9.89 $88.87 million $0.32 47.19

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

Profitability

This table compares Charter Financial and TFS Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Charter Financial 17.69% 6.12% 0.84%
TFS Financial 20.32% 5.54% 0.69%

Insider & Institutional Ownership

66.2% of Charter Financial shares are owned by institutional investors. Comparatively, 11.0% of TFS Financial shares are owned by institutional investors. 12.1% of Charter Financial shares are owned by insiders. Comparatively, 1.6% of TFS Financial shares are owned by 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.

About Charter Financial

Charter Financial Corporation operates as the holding company for CharterBank, a federally-chartered savings bank that provides various banking products and services to individuals and businesses in the United States. The company's deposit products include checking, money market, regular savings, and term certificate accounts, as well as noninterest-bearing demand deposits. It also offers commercial real estate loans, one- to four-family residential mortgage loans, construction loans, and investment securities; and commercial business loans, home equity loans, and lines of credit, as well as other consumer loans, including loans on deposits, automobile loans, mobile home loans, and various other installment loans. In addition, the company provides various community banking services, such as online banking and bill payment services, mobile banking, online cash management, safe deposit box rentals, and debit and ATM card services. It operates through a network of 22 branch offices in Metro Atlanta, the I-85 corridor south to Auburn, Alabama, and the Florida Gulf Coast. The company was founded in 1954 and is based in West Point, Georgia.

About TFS Financial

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings accounts, checking accounts, certificate of deposit accounts, individual retirement accounts, and other qualified plan accounts. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it engages in the net lease transactions of commercial buildings; provision of escrow and settlement services. The company offers its products and services through its main office in Cleveland, Ohio; and 38 full-service branches and 8 loan production offices located throughout the states of Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

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