Broadway Financial (NASDAQ:BYFC) and Axos Financial (NYSE:AX) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Broadway Financial and Axos Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadway Financial 0 0 0 0 N/A
Axos Financial 0 1 3 1 3.00

Axos Financial has a consensus target price of $38.80, suggesting a potential upside of 46.86%. Given Axos Financial’s higher probable upside, analysts plainly believe Axos Financial is more favorable than Broadway Financial.

Risk & Volatility

Broadway Financial has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Axos Financial has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

9.2% of Broadway Financial shares are held by institutional investors. Comparatively, 72.6% of Axos Financial shares are held by institutional investors. 4.0% of Broadway Financial shares are held by insiders. Comparatively, 6.5% of Axos Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Broadway Financial and Axos Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadway Financial $16.10 million 3.38 $810,000.00 N/A N/A
Axos Financial $546.02 million 2.97 $152.41 million $2.48 10.65

Axos Financial has higher revenue and earnings than Broadway Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Broadway Financial 6.93% 2.01% 0.23%
Axos Financial 24.48% 16.76% 1.67%

Summary

Axos Financial beats Broadway Financial on 11 of the 13 factors compared between the two stocks.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for Broadway Federal Bank, f.s.b. that engages in the savings and loan business in Southern California. It accepts various deposit products, such as savings accounts, checking accounts, NOW accounts, money market accounts, and fixed-term certificates of deposit. The company also provides loan products, including multi-family mortgage, single family mortgage, commercial real estate, church, construction, commercial, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company operates through three branch offices comprising two offices in Los Angeles and one in Inglewood, California. Broadway Financial Corporation was founded in 1946 and is headquartered in Los Angeles, California.

About Axos Financial

Axos Financial, Inc. operates as the holding company for BofI Federal Bank that provides consumer and business banking products in the United States. The company offers deposits products, including consumer and business checking, demand, savings, and time deposit accounts. It also provides single family and multifamily mortgage secured lending products; commercial real estate secured and commercial lending products; specialty finance factoring products; prime loans to customers secured by new and used automobiles; and term unsecured personal loans to individual borrowers, as well as overdraft lines of credit. In addition, the company offers prepaid card and refund transfer, debit card or ATM card, portfolio management, online bill payment, money transfer, overdraft protection, online and mobile banking, and text message banking services. 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 San Diego, California.

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