Analyzing Greene County Bancorp (NASDAQ:GCBC) and Capitol Federal Financial (NASDAQ:CFFN)

Greene County Bancorp (NASDAQ:GCBC) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Greene County Bancorp and Capitol Federal Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greene County Bancorp	0	1	0	0	2.00
Capitol Federal Financial	0	3	1	0	2.25

Capitol Federal Financial has a consensus price target of $8.00, indicating a potential upside of 4.85%. Given Capitol Federal Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Capitol Federal Financial is more favorable than Greene County Bancorp.

Institutional and Insider Ownership

13.4% of Greene County Bancorp shares are owned by institutional investors. Comparatively, 88.5% of Capitol Federal Financial shares are owned by institutional investors. 59.2% of Greene County Bancorp shares are owned by company insiders. Comparatively, 2.8% of Capitol Federal Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Greene County Bancorp and Capitol Federal Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greene County Bancorp	$88.08 million	4.76	$31.14 million	$2.29	10.75
Capitol Federal Financial	$216.98 million	4.46	$68.03 million	$0.60	12.72

Capitol Federal Financial has higher revenue and earnings than Greene County Bancorp. Greene County Bancorp 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.

Dividends

Greene County Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 4.5%. Greene County Bancorp pays out 17.5% of its earnings in the form of a dividend. Capitol Federal Financial pays out 56.7% 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. Greene County Bancorp has raised its dividend for 11 consecutive years.

Volatility & Risk

Greene County Bancorp has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Greene County Bancorp	27.28%	15.41%	1.26%
Capitol Federal Financial	17.80%	7.46%	0.79%

Summary

Capitol Federal Financial beats Greene County Bancorp on 9 of the 17 factors compared between the two stocks.

About Greene County Bancorp

Greene County Bancorp, Inc. operates as a holding company for The Bank of Greene County that provides various financial services in the United States. The company's deposit products include savings, NOW accounts, money market accounts, certificates of deposit, non-interest bearing checking accounts, and individual retirement accounts. Its loan portfolio consists of residential, construction and land, and multifamily loans; commercial real estate mortgage loans; consumer loans, such as loans on new and used automobiles, personal loans, and home equity loans, as well as other consumer installment loans, including passbook loans, unsecured home improvement loans, recreational vehicle loans, and deposit account overdrafts; and commercial loans. The company was founded in 1889 and is based in Catskill, New York. Greene County Bancorp, Inc. is a subsidiary of Greene County Bancorp, MHC.

About Capitol Federal Financial

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, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.