Fifth District Savings Bank (NASDAQ:FDSB) & Capitol Federal Financial (NASDAQ:CFFN) Critical Review

Fifth District Savings Bank (NASDAQ:FDSB) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings for Fifth District Savings Bank and Capitol Federal Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth District Savings Bank	0	0	0	0	0.00
Capitol Federal Financial	0	2	0	0	2.00

Capitol Federal Financial has a consensus target price of $6.50, suggesting a potential upside of 7.44%. Given Capitol Federal Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Capitol Federal Financial is more favorable than Fifth District Savings Bank.

Earnings and Valuation

This table compares Fifth District Savings Bank and Capitol Federal Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth District Savings Bank	N/A	N/A	N/A	N/A	N/A
Capitol Federal Financial	$382.09 million	2.10	$38.01 million	$0.39	15.51

Capitol Federal Financial has higher revenue and earnings than Fifth District Savings Bank.

Profitability

This table compares Fifth District Savings Bank and Capitol Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth District Savings Bank	N/A	N/A	N/A
Capitol Federal Financial	12.67%	4.96%	0.53%

Insider & Institutional Ownership

88.5% of Capitol Federal Financial shares are held by institutional investors. 3.2% of Capitol Federal Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Capitol Federal Financial beats Fifth District Savings Bank on 8 of the 8 factors compared between the two stocks.

About Fifth District Savings Bank

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.

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.