TFS Financial (NASDAQ:TFSL) & First Niles Financial (OTCMKTS:FNFI) Critical Review

TFS Financial (NASDAQ:TFSL) and First Niles Financial (OTCMKTS:FNFI) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 8.9%. First Niles Financial pays an annual dividend of $0.24 per share and has a dividend yield of 3.0%. TFS Financial pays out 418.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares TFS Financial and First Niles Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFS Financial	10.49%	4.20%	0.47%
First Niles Financial	N/A	N/A	N/A

Valuation & Earnings

This table compares TFS Financial and First Niles Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFS Financial	$758.78 million	4.72	$75.25 million	$0.27	47.22
First Niles Financial	$10.31 million	N/A	$810,000.00	N/A	N/A

TFS Financial has higher revenue and earnings than First Niles Financial.

Institutional and Insider Ownership

9.8% of TFS Financial shares are held by institutional investors. 1.1% of TFS Financial shares are held by company insiders. Comparatively, 23.4% of First Niles Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for TFS Financial and First Niles Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFS Financial	0	2	0	0	2.00
First Niles Financial	0	0	0	0	N/A

TFS Financial currently has a consensus target price of $14.00, indicating a potential upside of 9.80%. Given TFS Financial’s higher probable upside, equities research analysts plainly believe TFS Financial is more favorable than First Niles Financial.

Volatility & Risk

TFS Financial has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, First Niles Financial has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Summary

TFS Financial beats First Niles Financial on 9 of the 11 factors compared between the two stocks.

About TFS Financial

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and multiple full-service branches and loan production offices located throughout the states of Ohio and Florida. TFS Financial Corporation was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

About First Niles Financial

First Niles Financial, Inc. operates as a holding company for the Home Federal Savings and Loan Association of Niles that provides various banking products and services in Ohio, the United States. The company offers personal and business checking and savings, money market deposit, and Christmas club accounts, as well as certificates of deposit. It also provides various loans, including mortgage and consumer loans, home equity lines of credit, and commercial loans and lines of credit. In addition, the company provides e-statement, and night depository services; debit and ATM cards; safe deposit boxes; direct deposits; I.R.A. certificates of deposit and savings accounts; and online banking services. First Niles Financial, Inc. was founded in 1897 and is based in Niles, Ohio.