Head to Head Analysis: Chester Bancorp (OTCMKTS:CNBA) vs. TFS Financial (NASDAQ:TFSL)

TFS Financial (NASDAQ:TFSL) and Chester Bancorp (OTCMKTS:CNBA) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations for TFS Financial and Chester Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFS Financial	0	2	0	0	2.00
Chester Bancorp	0	0	0	0	0.00

TFS Financial currently has a consensus target price of $14.00, indicating a potential downside of 0.64%. Given TFS Financial’s stronger consensus rating and higher possible upside, analysts plainly believe TFS Financial is more favorable than Chester Bancorp.

Profitability

This table compares TFS Financial and Chester Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFS Financial	10.49%	4.20%	0.47%
Chester Bancorp	N/A	N/A	N/A

Institutional & Insider Ownership

9.8% of TFS Financial shares are owned by institutional investors. 1.1% of TFS Financial shares are owned by insiders. Comparatively, 38.8% of Chester Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares TFS Financial and Chester Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFS Financial	$758.78 million	5.21	$79.59 million	$0.27	52.19
Chester Bancorp	N/A	N/A	N/A	N/A	N/A

TFS Financial has higher revenue and earnings than Chester Bancorp.

Risk and Volatility

TFS Financial has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Chester Bancorp has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 8.0%. Chester Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 13.3%. TFS Financial pays out 418.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TFS Financial beats Chester Bancorp on 8 of the 11 factors compared between 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 Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, Illinois.