TFS Financial (NASDAQ:TFSL – Get Free Report) and Camden National (NASDAQ:CAC – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.
Dividends
TFS Financial pays an annual dividend of $1.27 per share and has a dividend yield of 7.8%. Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 2.9%. TFS Financial pays out 352.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden National pays out 31.6% of its earnings in the form of a dividend.
Profitability
This table compares TFS Financial and Camden National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TFS Financial | 12.36% | 5.32% | 0.58% |
| Camden National | 24.16% | 12.71% | 1.30% |
Risk and Volatility
TFS Financial has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Camden National has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for TFS Financial and Camden National, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TFS Financial | 0 | 3 | 1 | 0 | 2.25 |
| Camden National | 1 | 3 | 2 | 0 | 2.17 |
TFS Financial currently has a consensus price target of $18.00, indicating a potential upside of 9.99%. Camden National has a consensus price target of $56.00, indicating a potential downside of 3.76%. Given TFS Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TFS Financial is more favorable than Camden National.
Institutional and Insider Ownership
9.8% of TFS Financial shares are owned by institutional investors. Comparatively, 77.4% of Camden National shares are owned by institutional investors. 0.7% of TFS Financial shares are owned by insiders. Comparatively, 2.1% of Camden National shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares TFS Financial and Camden National”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TFS Financial | $791.96 million | 5.79 | $90.96 million | $0.36 | 45.46 |
| Camden National | $373.18 million | 2.64 | $65.16 million | $5.31 | 10.96 |
TFS Financial has higher revenue and earnings than Camden National. Camden National is trading at a lower price-to-earnings ratio than TFS Financial, indicating that it is currently the more affordable of the two stocks.
About TFS Financial
TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. 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 offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and multiple full-service branches and loan production offices located throughout the states of Ohio and Florida. TFS Financial Corporation 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.
About Camden National
Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.
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