Reviewing Athens Bancshares (AFCB) & BankFinancial (BFIN)

Athens Bancshares (OTCMKTS:AFCB) and BankFinancial (NASDAQ:BFIN) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Dividends

Athens Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. BankFinancial pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. BankFinancial pays out 63.5% of its earnings in the form of a dividend. BankFinancial has increased its dividend for 5 consecutive years. BankFinancial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Athens Bancshares and BankFinancial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Athens Bancshares N/A N/A N/A
BankFinancial 18.99% 7.88% 0.98%

Analyst Recommendations

This is a breakdown of recent ratings for Athens Bancshares and BankFinancial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Athens Bancshares 0 0 0 0 N/A
BankFinancial 0 0 1 0 3.00

Institutional and Insider Ownership

65.7% of BankFinancial shares are owned by institutional investors. 30.4% of Athens Bancshares shares are owned by company insiders. Comparatively, 15.2% of BankFinancial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Athens Bancshares and BankFinancial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Athens Bancshares N/A N/A N/A N/A N/A
BankFinancial $62.59 million 4.07 $9.00 million $0.63 23.81

BankFinancial has higher revenue and earnings than Athens Bancshares.

Summary

BankFinancial beats Athens Bancshares on 8 of the 10 factors compared between the two stocks.

About Athens Bancshares

Athens Bancshares Corporation operates as the holding company for Athens Federal Community Bank, National Association that provides financial services to consumers and businesses primarily in McMinn, Monroe, and Bradley counties, Tennessee. It accepts various deposits, including non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising NOW and money market accounts; regular savings accounts; and certificates of deposit, as well as IRA accounts. The company's loan portfolio comprises one-to four-family residential loans; non-residential real estate loans; construction loans for one-to four-family homes, and commercial properties, including assisted living facilities, retail shops and office units, and multi-family properties; land and land development loans; multi-family real estate loans; consumer loans consisting of home equity loans and lines of credit, automobile loans, and loans secured by deposits; and commercial business loans to small businesses. Athens Bancshares Corporation operates through its seven branches located in Athens, Sweetwater, Etowah, Madisonville, and Cleveland, Tennessee. The company was incorporated in 2009 and is headquartered in Athens, Tennessee.

About BankFinancial

BankFinancial Corporation operates as the holding company for BankFinancial, National Association that provides commercial, family, and personal banking products and services in Illinois. The company accepts various deposit products, such as savings, NOW, checking, money market, IRA, and other retirement accounts, as well as certificates of deposit. It also offers multi-family and nonresidential real estate, construction and land, and commercial loans, as well as commercial leases; consumer loans; and one-to-four family residential mortgage loans, including home equity loans and lines of credit. In addition, the company provides various financial products and services, such as cash management, fund transfer, bill payment and other online and mobile banking transactions, automated teller machines, safe deposit boxes, trust, wealth management, and general insurance agency. Further, it offers financial planning services; and sells property and casualty, and other insurance products on an agency basis. It operates 19 full-service banking offices located in Cook, DuPage, Lake, and Will Counties. BankFinancial Corporation was founded in 1924 and is headquartered in Burr Ridge, Illinois.

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