Contrasting Territorial Bancorp (NASDAQ:TBNK) & CFSB Bancorp (NASDAQ:CFSB)

Territorial Bancorp (NASDAQ:TBNK) and CFSB Bancorp (NASDAQ:CFSB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Territorial Bancorp and CFSB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Territorial Bancorp	-5.74%	-1.72%	-0.20%
CFSB Bancorp	-0.36%	-0.06%	-0.01%

Institutional and Insider Ownership

50.3% of Territorial Bancorp shares are owned by institutional investors. Comparatively, 1.4% of CFSB Bancorp shares are owned by institutional investors. 9.0% of Territorial Bancorp shares are owned by company insiders. Comparatively, 4.9% of CFSB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Territorial Bancorp and CFSB Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Territorial Bancorp	0	2	0	0	2.00
CFSB Bancorp	0	0	0	0	0.00

Territorial Bancorp currently has a consensus price target of $9.89, suggesting a potential upside of 11.82%. Given Territorial Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Territorial Bancorp is more favorable than CFSB Bancorp.

Risk and Volatility

Territorial Bancorp has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, CFSB Bancorp has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Valuation and Earnings

This table compares Territorial Bancorp and CFSB Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Territorial Bancorp	$34.30 million	2.28	-$4.30 million	($0.50)	-17.68
CFSB Bancorp	$12.34 million	4.12	$30,000.00	($0.01)	-766.10

CFSB Bancorp has lower revenue, but higher earnings than Territorial Bancorp. CFSB Bancorp is trading at a lower price-to-earnings ratio than Territorial Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Territorial Bancorp beats CFSB Bancorp on 7 of the 13 factors compared between the two stocks.

About Territorial Bancorp

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that engages in the provision of various financial services to individuals, families, and businesses in the State of Hawaii. The company offers a range of deposit accounts, including passbook and statement savings, money market, commercial and regular checking, and Super NOW accounts, as well as certificates of deposit. It also provides various loan products, such as one-to four-family residential mortgage loans; home equity loans; consumer loans; and multi-family mortgage, commercial business, construction, commercial real estate, and other nonresidential real estate loans, as well as lines of credit and investment securities. In addition, the company is involved in the insurance agency activities. Further, it provides various non-deposit investments comprising annuities and mutual funds through a third-party broker-dealer. The company was founded in 1921 and is headquartered in Honolulu, Hawaii.

About CFSB Bancorp

CFSB Bancorp, Inc. focuses on operating as a holding company for Colonial Federal Savings Bank that provides various financial services to individuals and small businesses. It accepts various deposits, including non-interest-bearing checking accounts, interest-bearing checking accounts, money market accounts, savings accounts, and certificates of deposit. The company offers one- to four-family residential real estate loans, multi-family real estate loans, commercial real estate loans, second mortgage loans, home equity lines of credit, and consumer loans. In addition, it invests in various types of investment grade investment securities and liquid assets comprising the U.S. treasury obligations, securities of various government-sponsored enterprises, corporate debt, mortgage-backed securities, collateralized mortgage obligations, asset-backed securities, municipal obligations, mutual funds, and certificates of deposit of federally insured institutions. Further, it offers online and mobile banking, and online bill pay services. The company operates through three full-service banking offices and one limited-service branch office in Norfolk County, Massachusetts. The company was founded in 1889 and is based in Quincy, Massachusetts. CFSB Bancorp, Inc. is a subsidiary of 15 Beach, MHC.