Analyzing Capitol Federal Financial (CFFN) & Bancolombia (CIB)

Capitol Federal Financial (NASDAQ: CFFN) and Bancolombia (NYSE:CIB) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Dividends

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Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.6%. Bancolombia pays an annual dividend of $1.26 per share and has a dividend yield of 2.9%. Capitol Federal Financial pays out 47.9% of its earnings in the form of a dividend. Bancolombia pays out 29.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bancolombia is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

75.4% of Capitol Federal Financial shares are owned by institutional investors. Comparatively, 12.5% of Bancolombia shares are owned by institutional investors. 2.2% of Capitol Federal Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Capitol Federal Financial 27.99% 6.44% 0.96%
Bancolombia 13.05% 13.51% 1.55%

Analyst Ratings

This is a summary of recent ratings and price targets for Capitol Federal Financial and Bancolombia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capitol Federal Financial 0 1 0 0 2.00
Bancolombia 2 4 0 0 1.67

Capitol Federal Financial currently has a consensus price target of $14.00, indicating a potential upside of 8.61%. Bancolombia has a consensus price target of $43.67, indicating a potential upside of 2.02%. Given Capitol Federal Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Capitol Federal Financial is more favorable than Bancolombia.

Risk & Volatility

Capitol Federal Financial has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Bancolombia has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Valuation & Earnings

This table compares Capitol Federal Financial and Bancolombia’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capitol Federal Financial $335.38 million 5.31 $84.13 million $0.71 18.16
Bancolombia $7.01 billion 1.47 $876.34 million $4.23 10.12

Bancolombia has higher revenue and earnings than Capitol Federal Financial. Bancolombia 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

Bancolombia beats Capitol Federal Financial on 8 of the 15 factors compared between the two stocks.

Capitol Federal Financial Company Profile

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 comprising savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposits. It also provides various loan products, such as one- to four-family residential real estate loans; construction-to-permanent loans; consumer loans comprising home equity loans and lines of credit, home improvement loans, auto loans, and loans secured by savings deposits; and commercial real estate loans consisting of various property types, including hotels, office and retail buildings, senior housing facilities, and multi-family dwellings located in Texas, Missouri, Kansas, Nebraska, Colorado, Arkansas, California, and Montana. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; and invests in various securities. It operates a network of 47 branches, which include 37 traditional branches and 10 in-store branches located in 9 counties throughout Kansas and 3 counties in Missouri. The company was founded in 1893 and is headquartered in Topeka, Kansas.

Bancolombia Company Profile

Bancolombia S.A. (Bancolombia) is a financial institution engaged in providing a range of financial products and services to a diversified individual, corporate, and government customer base throughout Colombia, Latin America and the Caribbean region. The Bank operates through 10 segments: Banking Colombia, Banking Panama, Banking El Salvador, Leasing, Trust, Investment Banking, Brokerage, Off Shore and All other. It delivers its products and services through its regional network comprising Colombia’s non-Government owned banking network, El Salvador’s financial conglomerate by gross loans, Guatemala’s bank, Panama’s bank and off-shore banking subsidiaries in Panama, Cayman and Puerto Rico, as well as subsidiaries in Peru. The Bank and its subsidiaries offer Savings And Investment, Ahorro A La Mano, Financing, Mortgage Banking, Factoring, Financial and Operating Leases, Capital Markets, eTrading, Cash Management, Foreign Currency, Bancassurance, Investment Banking and Trust Services.

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