Contrasting Pacific Alliance Bank (OTCMKTS:PFBN) and TFS Financial (NASDAQ:TFSL)

TFS Financial (NASDAQ:TFSL) and Pacific Alliance Bank (OTCMKTS:PFBN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares TFS Financial and Pacific Alliance Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFS Financial	$343.73 million	14.04	$90.96 million	$0.36	47.81
Pacific Alliance Bank	$26.40 million	1.14	$2.30 million	N/A	N/A

TFS Financial has higher revenue and earnings than Pacific Alliance Bank.

Risk and Volatility

TFS Financial has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Pacific Alliance Bank has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TFS Financial and Pacific Alliance Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFS Financial	0	3	1	0	2.25
Pacific Alliance Bank	0	0	0	0	0.00

TFS Financial currently has a consensus price target of $19.00, suggesting a potential upside of 10.40%. Given TFS Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe TFS Financial is more favorable than Pacific Alliance Bank.

Profitability

This table compares TFS Financial and Pacific Alliance Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFS Financial	12.36%	5.36%	0.58%
Pacific Alliance Bank	N/A	N/A	N/A

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 6.6%. Pacific Alliance Bank pays an annual dividend of $0.10 per share and has a dividend yield of 1.1%. TFS Financial pays out 313.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

9.8% of TFS Financial shares are owned by institutional investors. 0.7% of TFS Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

TFS Financial beats Pacific Alliance Bank on 13 of the 14 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 Pacific Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.