Critical Analysis: First Niles Financial (OTCMKTS:FNFI) versus TFS Financial (NASDAQ:TFSL)

First Niles Financial (OTCMKTS:FNFI) and TFS Financial (NASDAQ:TFSL) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk & Volatility

First Niles Financial has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, TFS Financial has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Niles Financial and TFS Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Niles Financial	$10.31 million	N/A	$810,000.00	N/A	N/A
TFS Financial	$758.78 million	5.23	$79.59 million	$0.27	52.34

TFS Financial has higher revenue and earnings than First Niles Financial.

Dividends

First Niles Financial pays an annual dividend of $0.24 per share and has a dividend yield of 3.0%. TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 8.0%. TFS Financial pays out 418.5% 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 held by institutional investors. 23.4% of First Niles Financial shares are held by company insiders. Comparatively, 1.1% of TFS Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for First Niles Financial and TFS Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Niles Financial	0	0	0	0	0.00
TFS Financial	0	2	0	0	2.00

TFS Financial has a consensus price target of $14.00, indicating a potential downside of 0.92%. Given TFS Financial’s stronger consensus rating and higher probable upside, analysts clearly believe TFS Financial is more favorable than First Niles Financial.

Profitability

This table compares First Niles Financial and TFS Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Niles Financial	N/A	N/A	N/A
TFS Financial	10.49%	4.20%	0.47%

Summary

TFS Financial beats First Niles Financial on 10 of the 12 factors compared between the two stocks.

About First Niles Financial

First Niles Financial, Inc. operates as a holding company for the Home Federal Savings and Loan Association of Niles that provides various banking products and services in Ohio, the United States. The company offers personal and business checking and savings, money market deposit, and Christmas club accounts, as well as certificates of deposit. It also provides various loans, including mortgage and consumer loans, home equity lines of credit, and commercial loans and lines of credit. In addition, the company provides e-statement, and night depository services; debit and ATM cards; safe deposit boxes; direct deposits; I.R.A. certificates of deposit and savings accounts; and online banking services. First Niles Financial, Inc. was founded in 1897 and is based in Niles, Ohio.

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.