Head to Head Review: CFSB Bancorp (NASDAQ:CFSB) versus Sound Financial Bancorp (NASDAQ:SFBC)

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

Analyst Ratings

This is a summary of recent recommendations for Sound Financial Bancorp and CFSB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Financial Bancorp	0	0	0	0	N/A
CFSB Bancorp	0	0	0	0	N/A

Earnings & Valuation

This table compares Sound Financial Bancorp and CFSB Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Financial Bancorp	$55.62 million	1.80	$7.44 million	$2.86	13.69
CFSB Bancorp	$11.34 million	4.03	$1.45 million	$0.07	98.43

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

Insider & Institutional Ownership

68.9% of Sound Financial Bancorp shares are owned by institutional investors. Comparatively, 1.4% of CFSB Bancorp shares are owned by institutional investors. 12.5% of Sound Financial Bancorp shares are owned by company insiders. Comparatively, 4.0% of CFSB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Sound Financial Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, CFSB Bancorp has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sound Financial Bancorp	13.38%	7.45%	0.74%
CFSB Bancorp	3.22%	0.49%	0.11%

Summary

Sound Financial Bancorp beats CFSB Bancorp on 9 of the 11 factors compared between the two stocks.

About Sound Financial Bancorp

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides banking and other financial services for consumers and businesses. It accepts various deposits products comprising savings, money market deposit, NOW, and demand accounts, as well as certificates of deposit. The company also offers loans secured by first and second mortgages on one-to four-family residences; home equity loans, including fixed-rate loans and variable-rate lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences, and commercial and multifamily real estate; land loans; commercial business loans to finance commercial vehicles and equipment, as well as loans secured by accounts receivable and/or inventory; and secured and unsecured consumer loans, such as new and used manufactured homes, floating homes, automobiles, boats, and recreational vehicle loans, and loans secured by deposit accounts. It operates branch offices in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow, and University Place; and loan production office in the Madison Park neighborhood of Seattle, Washington. The company was founded in 1953 and is headquartered in Seattle, Washington.

About CFSB Bancorp

CFSB Bancorp, Inc. focuses on operating as a holding company for Colonial Federal Savings Bank that provides various financial services to individuals and small businesses. It accepts various deposits, including non-interest-bearing checking accounts, interest-bearing checking accounts, money market accounts, savings accounts, and certificates of deposit. The company offers one- to four-family residential real estate loans, multi-family real estate loans, commercial real estate loans, second mortgage loans, home equity lines of credit, and consumer loans. In addition, it invests in various types of investment grade investment securities and liquid assets comprising the U.S. treasury obligations, securities of various government-sponsored enterprises, corporate debt, mortgage-backed securities, collateralized mortgage obligations, asset-backed securities, municipal obligations, mutual funds, and certificates of deposit of federally insured institutions. Further, it offers online and mobile banking, and online bill pay services. The company operates through three full-service banking offices and one limited-service branch office in Norfolk County, Massachusetts. The company was founded in 1889 and is based in Quincy, Massachusetts. CFSB Bancorp, Inc. is a subsidiary of 15 Beach, MHC.