Financial Contrast: Axos Financial (NYSE:AX) vs. CFSB Bancorp (NASDAQ:CFSB)

Axos Financial (NYSE:AX) and CFSB Bancorp (NASDAQ:CFSB) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Volatility and Risk

Axos Financial has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, CFSB Bancorp has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500.

Valuation and Earnings

This table compares Axos Financial and CFSB Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axos Financial	$1.88 billion	2.14	$450.01 million	$8.26	8.52
CFSB Bancorp	$12.34 million	3.71	$30,000.00	($0.01)	-690.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axos Financial	24.07%	18.99%	1.88%
CFSB Bancorp	-0.75%	-0.13%	-0.03%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Axos Financial and CFSB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axos Financial	0	2	3	0	2.60
CFSB Bancorp	0	0	0	0	0.00

Axos Financial presently has a consensus price target of $83.20, suggesting a potential upside of 18.17%. Given Axos Financial’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Axos Financial is more favorable than CFSB Bancorp.

Institutional & Insider Ownership

83.8% of Axos Financial shares are held by institutional investors. Comparatively, 1.4% of CFSB Bancorp shares are held by institutional investors. 5.1% of Axos Financial shares are held by insiders. Comparatively, 4.9% of CFSB Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Axos Financial beats CFSB Bancorp on 13 of the 14 factors compared between the two stocks.

About Axos Financial

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

About CFSB Bancorp

CFSB Bancorp, Inc. focuses on operating as a holding company for Colonial Federal Savings Bank that provides various financial services to individuals and small businesses. It accepts various deposits, including non-interest-bearing checking accounts, interest-bearing checking accounts, money market accounts, savings accounts, and certificates of deposit. The company offers one- to four-family residential real estate loans, multi-family real estate loans, commercial real estate loans, second mortgage loans, home equity lines of credit, and consumer loans. In addition, it invests in various types of investment grade investment securities and liquid assets comprising the U.S. treasury obligations, securities of various government-sponsored enterprises, corporate debt, mortgage-backed securities, collateralized mortgage obligations, asset-backed securities, municipal obligations, mutual funds, and certificates of deposit of federally insured institutions. Further, it offers online and mobile banking, and online bill pay services. The company operates through three full-service banking offices and one limited-service branch office in Norfolk County, Massachusetts. The company was founded in 1889 and is based in Quincy, Massachusetts. CFSB Bancorp, Inc. is a subsidiary of 15 Beach, MHC.