Axos Financial (NYSE:AX) versus Fifth District Savings Bank (NASDAQ:FDSB) Critical Review

Axos Financial (NYSE:AX) and Fifth District Savings Bank (NASDAQ:FDSB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

83.8% of Axos Financial shares are owned by institutional investors. 5.1% of Axos 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Axos Financial and Fifth District Savings Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axos Financial	0	2	4	0	2.67
Fifth District Savings Bank	0	0	0	0	0.00

Axos Financial presently has a consensus price target of $84.17, suggesting a potential upside of 26.98%. Given Axos Financial’s stronger consensus rating and higher probable upside, equities analysts plainly believe Axos Financial is more favorable than Fifth District Savings Bank.

Valuation and Earnings

This table compares Axos Financial and Fifth District Savings Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axos Financial	$1.88 billion	2.02	$450.01 million	$7.44	8.91
Fifth District Savings Bank	$9.32 million	7.31	N/A	N/A	N/A

Axos Financial has higher revenue and earnings than Fifth District Savings Bank.

Profitability

This table compares Axos Financial and Fifth District Savings Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axos Financial	22.10%	18.67%	1.89%
Fifth District Savings Bank	N/A	N/A	N/A

Summary

Axos Financial beats Fifth District Savings Bank on 9 of the 10 factors compared between the two stocks.

About Axos Financial

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

About Fifth District Savings Bank

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.