First Defiance Financial (NASDAQ: FDEF) and Oritani Financial (NASDAQ:ORIT) are both small-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Risk & Volatility
First Defiance Financial has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Oritani Financial has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
This table compares First Defiance Financial and Oritani Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Defiance Financial||21.77%||9.67%||1.20%|
Valuation & Earnings
This table compares First Defiance Financial and Oritani Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Defiance Financial||$148.18 million||3.72||$32.27 million||$3.21||16.89|
|Oritani Financial||$159.31 million||4.62||$49.14 million||$0.96||16.56|
Oritani Financial has higher revenue and earnings than First Defiance Financial. Oritani Financial is trading at a lower price-to-earnings ratio than First Defiance Financial, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for First Defiance Financial and Oritani Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Defiance Financial||0||1||1||0||2.50|
First Defiance Financial currently has a consensus target price of $62.00, suggesting a potential upside of 14.35%. Oritani Financial has a consensus target price of $17.00, suggesting a potential upside of 6.92%. Given First Defiance Financial’s stronger consensus rating and higher probable upside, research analysts clearly believe First Defiance Financial is more favorable than Oritani Financial.
Insider & Institutional Ownership
65.2% of First Defiance Financial shares are held by institutional investors. Comparatively, 62.6% of Oritani Financial shares are held by institutional investors. 3.4% of First Defiance Financial shares are held by company insiders. Comparatively, 12.1% of Oritani Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
First Defiance Financial pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Oritani Financial pays an annual dividend of $1.00 per share and has a dividend yield of 6.3%. First Defiance Financial pays out 37.4% of its earnings in the form of a dividend. Oritani Financial pays out 104.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
First Defiance Financial Company Profile
First Defiance Financial Corp. is a unitary thrift holding company that focuses on traditional banking and property and casualty, life and group health insurance products. The Company operates through its subsidiaries, First Federal Bank of the Midwest (First Federal or the Bank), First Insurance Group of the Midwest, Inc. (First Insurance) and First Defiance Risk Management Inc. (First Defiance Risk Management). First Federal is a federally chartered stock savings bank. First Federal’s banking activities include originating and servicing residential, commercial, and consumer loans, and providing a range of depository, trust and wealth management services. First Insurance offers property and casualty, and group health and life insurance products. First Defiance Risk Management is an insurance company subsidiary of the Company to insure the Company and its subsidiaries against certain risks to the operations of the Company.
Oritani Financial Company Profile
Oritani Financial Corp. is a holding company for Oritani Bank (the Bank). The Bank offers a range of retail and commercial loan and deposit products. The Bank operates in the New Jersey Counties of Bergen, Hudson, Essex and Passaic. The Bank’s loan portfolio includes residential loans, residential commercial real estate loans, credit or grocery retail commercial real estate loans, other commercial real estate loans, and construction and land loans. Its investment securities are classified as held to maturity, including mortgage-backed securities, and available for sale, including equity securities and mortgage-backed securities. Its deposits include checking (non-interest and interest-bearing demand deposits), money market deposit accounts, savings accounts and time deposits. The Bank offers personal banking services, such as mobile banking, and online banking and others services, and business banking services, such as business accounts and business services.
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