E*TRADE Financial (ETFC) vs. Territorial Bancorp (TBNK) Head to Head Review

Territorial Bancorp (NASDAQ: TBNK) and E*TRADE Financial (NASDAQ:ETFC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Territorial Bancorp and E*TRADE Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Territorial Bancorp 2 2 0 0 1.50
E*TRADE Financial 0 2 15 1 2.94

Territorial Bancorp presently has a consensus target price of $33.50, suggesting a potential upside of 8.38%. E*TRADE Financial has a consensus target price of $61.18, suggesting a potential downside of 5.71%. Given Territorial Bancorp’s higher probable upside, equities analysts clearly believe Territorial Bancorp is more favorable than E*TRADE Financial.

Institutional and Insider Ownership

44.5% of Territorial Bancorp shares are held by institutional investors. Comparatively, 93.3% of E*TRADE Financial shares are held by institutional investors. 11.7% of Territorial Bancorp shares are held by company insiders. Comparatively, 0.1% of E*TRADE Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Territorial Bancorp and E*TRADE Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Territorial Bancorp $72.18 million 4.17 $14.96 million $1.78 17.37
E*TRADE Financial $2.37 billion 7.24 $614.00 million $2.19 29.63

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

Dividends

Territorial Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. E*TRADE Financial does not pay a dividend. Territorial Bancorp pays out 44.9% of its earnings in the form of a dividend.

Risk & Volatility

Territorial Bancorp has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, E*TRADE Financial has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Territorial Bancorp and E*TRADE Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Territorial Bancorp 21.08% 7.45% 0.88%
E*TRADE Financial 28.40% 11.64% 1.18%

Summary

E*TRADE Financial beats Territorial Bancorp on 14 of the 17 factors compared between the two stocks.

About Territorial Bancorp

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that provides various financial services to individuals, families, and businesses. The company offers a range of deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial and regular checking accounts, and NOW accounts. It also provides various loan products comprising one- to four-family residential mortgage loans; home equity loans and lines of credit; construction, commercial, and other non-residential real estate loans; consumer loans; multi-family mortgage loans; commercial business loans; and other loans, as well as offers investment securities. In addition, the company, through its subsidiary, Territorial Financial Services, Inc. engages in insurance agency activities. Further, it provides various non-deposit investments, including annuities and mutual funds through a third-party broker-dealer. The company operates through a network of 29 full-service branches located in the State of Hawaii. Territorial Bancorp Inc. was founded in 1921 and is based in Honolulu, Hawaii.

About E*TRADE Financial

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. It also offers investor-focused banking products, primarily sweep deposits to retail investors; Federal Deposit Insurance Corporation insurance services; clearing and settlement services; investment advisory services; and financial corporate services, such as software and services for managing equity compensation plans to its corporate clients. The company provides its services to customers through digital platforms; and a network of industry-licensed customer service representatives and financial consultants through phone, email, and online at two national financial centers, as well as in person through 30 regional financial centers in the United States. E*TRADE Financial Corporation was founded in 1982 and is headquartered in New York, New York.

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