Contrasting TFS Financial (NASDAQ:TFSL) and Landmark Bancorp (NASDAQ:LARK)

TFS Financial (NASDAQ:TFSL) and Landmark Bancorp (NASDAQ:LARK) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for TFS Financial and Landmark 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
Landmark Bancorp	0	0	1	0	3.00

TFS Financial currently has a consensus price target of $15.00, indicating a potential upside of 15.65%. Given TFS Financial’s higher possible upside, equities analysts clearly believe TFS Financial is more favorable than Landmark Bancorp.

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 8.7%. Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 3.3%. TFS Financial pays out 389.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Landmark Bancorp pays out 29.8% of its earnings in the form of a dividend. Landmark Bancorp has increased its dividend for 6 consecutive years.

Earnings & Valuation

This table compares TFS Financial and Landmark Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFS Financial	$758.78 million	4.80	$79.59 million	$0.29	44.72
Landmark Bancorp	$89.35 million	1.67	$13.00 million	$2.82	9.15

TFS Financial has higher revenue and earnings than Landmark Bancorp. Landmark Bancorp is trading at a lower price-to-earnings ratio than TFS Financial, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

TFS Financial has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Landmark Bancorp has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Insider & Institutional Ownership

9.8% of TFS Financial shares are owned by institutional investors. Comparatively, 25.7% of Landmark Bancorp shares are owned by institutional investors. 1.0% of TFS Financial shares are owned by company insiders. Comparatively, 12.8% of Landmark Bancorp shares are owned by company 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 TFS Financial and Landmark Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFS Financial	10.67%	4.40%	0.48%
Landmark Bancorp	17.55%	12.09%	1.08%

Summary

Landmark Bancorp beats TFS Financial on 10 of the 17 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 Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.