Analyzing Timberland Bancorp (TSBK) & Prudential Bancorp (PBIP)

Timberland Bancorp (NASDAQ:TSBK) and Prudential Bancorp (NASDAQ:PBIP) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

58.3% of Timberland Bancorp shares are owned by institutional investors. Comparatively, 38.3% of Prudential Bancorp shares are owned by institutional investors. 6.3% of Timberland Bancorp shares are owned by insiders. Comparatively, 4.8% of Prudential Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Timberland Bancorp and Prudential Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Timberland Bancorp 30.75% 14.22% 1.67%
Prudential Bancorp 18.91% N/A N/A

Dividends

Timberland Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.0%. Prudential Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. Timberland Bancorp has raised its dividend for 2 consecutive years. Timberland Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Timberland Bancorp has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Prudential Bancorp has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500.

Earnings and Valuation

This table compares Timberland Bancorp and Prudential Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Timberland Bancorp $54.38 million 3.46 $16.72 million N/A N/A
Prudential Bancorp $37.35 million 4.29 $7.06 million N/A N/A

Timberland Bancorp has higher revenue and earnings than Prudential Bancorp.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Timberland Bancorp and Prudential Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timberland Bancorp 0 0 0 0 N/A
Prudential Bancorp 0 0 0 0 N/A

Summary

Timberland Bancorp beats Prudential Bancorp on 10 of the 12 factors compared between the two stocks.

About Timberland Bancorp

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various banking services in Washington. It offers various deposit products, including money market deposit accounts, checking accounts, regular savings accounts, and certificates of deposit. The company also provides one-to four-family residential, multi-family, commercial real estate, construction, custom and owner/builder construction, speculative one- to four-family construction, commercial construction, multi-family construction, land development construction, and land loans. In addition, it offers consumer loans comprising home equity lines of credit, second mortgage loans, and savings account loans; and automobile loans, boat loans, motorcycle loans, recreational vehicle loans, and unsecured loans, as well as commercial business loans. The company operates 22 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King, and Lewis counties in Washington. As of September 30, 2017, it operated 22 proprietary ATMs. The company was founded in 1915 and is based in Hoquiam, Washington.

About Prudential Bancorp

Prudential Bancorp, Inc. is a bank holding company for Prudential Savings Bank, which engages in the provision of financial services. The company was founded in 2004 and is headquartered in Philadelphia, PA.

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