Timberland Bancorp (NASDAQ:TSBK) and Broadway Financial (NASDAQ:BYFC) Financial Comparison

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

Institutional & Insider Ownership

12.1% of Broadway Financial shares are held by institutional investors. Comparatively, 65.5% of Timberland Bancorp shares are held by institutional investors. 4.1% of Broadway Financial shares are held by company insiders. Comparatively, 3.6% of Timberland Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Broadway Financial and Timberland Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	1	0	0	0	1.00
Timberland Bancorp	0	0	1	0	3.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	-36.31%	1.41%	0.14%
Timberland Bancorp	26.17%	11.73%	1.54%

Risk and Volatility

Broadway Financial has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Timberland Bancorp has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Earnings and Valuation

This table compares Broadway Financial and Timberland Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$63.76 million	1.15	$1.93 million	($2.96)	-2.70
Timberland Bancorp	$114.63 million	2.64	$29.16 million	$3.86	9.96

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

Summary

Timberland Bancorp 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 City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

About Timberland Bancorp

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, and commercial real estate loans; and construction lending products, such as custom and owner/builder, speculative one- to four-family, commercial, multi-family, land development, and land development. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans, automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans; and commercial business loans. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington.