Reviewing Mvb Financial (NASDAQ:MVBF) and Capitol Federal Financial (NASDAQ:CFFN)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mvb Financial	$200.74 million	2.02	$26.94 million	$2.96	10.58
Capitol Federal Financial	$420.24 million	2.64	$68.03 million	$0.65	13.57

Capitol Federal Financial has higher revenue and earnings than Mvb Financial. Mvb Financial 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.

Insider and Institutional Ownership

52.7% of Mvb Financial shares are owned by institutional investors. Comparatively, 88.5% of Capitol Federal Financial shares are owned by institutional investors. 9.9% of Mvb Financial shares are owned by company insiders. Comparatively, 2.8% of Capitol Federal Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Mvb Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.2%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 3.9%. Mvb Financial pays out 23.0% of its earnings in the form of a dividend. Capitol Federal Financial pays out 52.3% 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.

Risk and Volatility

Mvb Financial has a beta of 0.81, meaning that its stock price is 19% 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.

Analyst Ratings

This is a breakdown of recent ratings for Mvb Financial and Capitol Federal Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mvb Financial	0	2	4	0	2.67
Capitol Federal Financial	0	3	1	1	2.60

Mvb Financial presently has a consensus target price of $32.75, indicating a potential upside of 4.53%. Capitol Federal Financial has a consensus target price of $9.25, indicating a potential upside of 4.88%. Given Capitol Federal Financial’s higher probable upside, analysts clearly believe Capitol Federal Financial is more favorable than Mvb Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mvb Financial	17.53%	2.86%	0.29%
Capitol Federal Financial	18.69%	8.01%	0.85%

Summary

Capitol Federal Financial beats Mvb Financial on 11 of the 17 factors compared between the two stocks.

About Mvb Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.

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.