Critical Comparison: Landmark Bancorp (NASDAQ:LARK) vs. Capitol Federal Financial (NASDAQ:CFFN)

Landmark Bancorp (NASDAQ:LARK) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Landmark Bancorp and Capitol Federal Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Landmark Bancorp	0	0	1	0	3.00
Capitol Federal Financial	0	3	2	0	2.40

Capitol Federal Financial has a consensus price target of $9.00, indicating a potential upside of 5.45%. Given Capitol Federal Financial’s higher possible upside, analysts plainly believe Capitol Federal Financial is more favorable than Landmark Bancorp.

Earnings and Valuation

This table compares Landmark Bancorp and Capitol Federal Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Landmark Bancorp	$95.97 million	1.95	$18.77 million	$3.12	9.84
Capitol Federal Financial	$216.98 million	4.99	$68.03 million	$0.60	14.23

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

Institutional and Insider Ownership

25.7% of Landmark Bancorp shares are owned by institutional investors. Comparatively, 88.5% of Capitol Federal Financial shares are owned by institutional investors. 12.8% of Landmark Bancorp shares are owned by insiders. Comparatively, 2.8% of Capitol Federal Financial shares are owned by 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.

Dividends

Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 4.0%. Landmark Bancorp pays out 26.9% of its earnings in the form of a dividend. Capitol Federal Financial pays out 56.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Landmark Bancorp has raised its dividend for 6 consecutive years.

Volatility and Risk

Landmark Bancorp has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Landmark Bancorp and Capitol Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Landmark Bancorp	19.67%	12.22%	1.19%
Capitol Federal Financial	17.80%	7.46%	0.79%

Summary

Capitol Federal Financial beats Landmark Bancorp on 9 of the 17 factors compared between the two stocks.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.

About Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.