The Financial Analysis: Territorial Bancorp (TBNK) vs. Its Peers

The Financial Analysis: Territorial Bancorp (TBNK) vs. Its Peers

Territorial Bancorp (NASDAQ: TBNK) is one of 328 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Territorial Bancorp to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Dividends

Territorial Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Territorial Bancorp pays out 44.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 36.7% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Territorial Bancorp and its competitors, as provided by MarketBeat.com.

As a group, “Banks” companies have a potential downside of 8.18%. Given Territorial Bancorp’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Territorial Bancorp has less favorable growth aspects than its competitors.

Profitability

This table compares Territorial Bancorp and its competitors’ net margins, return on equity and return on assets.

Earnings & Valuation

This table compares Territorial Bancorp and its competitors gross revenue, earnings per share and valuation.

Territorial Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

45.2% of Territorial Bancorp shares are owned by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are owned by institutional investors. 9.8% of Territorial Bancorp shares are owned by insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Territorial Bancorp has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Territorial Bancorp’s competitors have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Summary

Territorial Bancorp competitors beat Territorial Bancorp on 11 of the 14 factors compared.

About Territorial Bancorp

Territorial Bancorp Inc. is the holding company for Territorial Savings Bank (the Bank). The Bank provides financial services to individuals, families and businesses through its banking offices located throughout the State of Hawaii. Its business consists primarily of accepting deposits from the general public and investing those deposits together with funds generated from operations and borrowings in one- to four-family residential mortgage loans and investment securities. The Bank offers a range of deposit accounts, including passbook and statement savings accounts, certificates of deposit (CDs), money market accounts, and commercial and regular checking accounts. Through its subsidiary, Territorial Financial Services, Inc., the Bank engages in insurance agency activities. It also offers various non-deposit investments to its customers, including annuities and mutual funds, through a third-party broker-dealer.

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