Oritani Financial Corp. (NASDAQ: ORIT) and Atlantic Coast Financial Corporation (NASDAQ:ACFC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Risk and Volatility

Oritani Financial Corp. has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Atlantic Coast Financial Corporation has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Oritani Financial Corp. and Atlantic Coast Financial Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oritani Financial Corp. 31.03% 10.73% 1.45%
Atlantic Coast Financial Corporation 13.98% 6.19% 0.60%

Insider and Institutional Ownership

63.7% of Oritani Financial Corp. shares are held by institutional investors. Comparatively, 52.0% of Atlantic Coast Financial Corporation shares are held by institutional investors. 12.1% of Oritani Financial Corp. shares are held by company insiders. Comparatively, 10.9% of Atlantic Coast Financial Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Oritani Financial Corp. pays an annual dividend of $0.70 per share and has a dividend yield of 4.3%. Atlantic Coast Financial Corporation does not pay a dividend. Oritani Financial Corp. pays out 61.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Oritani Financial Corp. and Atlantic Coast Financial Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oritani Financial Corp. 0 1 0 0 2.00
Atlantic Coast Financial Corporation 0 1 0 0 2.00

Oritani Financial Corp. currently has a consensus target price of $17.00, indicating a potential upside of 4.62%. Atlantic Coast Financial Corporation has a consensus target price of $8.50, indicating a potential downside of 1.28%. Given Oritani Financial Corp.’s higher probable upside, analysts clearly believe Oritani Financial Corp. is more favorable than Atlantic Coast Financial Corporation.

Valuation & Earnings

This table compares Oritani Financial Corp. and Atlantic Coast Financial Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Oritani Financial Corp. $159.31 million 4.72 $49.14 million $1.13 14.38
Atlantic Coast Financial Corporation $43.14 million 3.10 $6.41 million $0.38 22.66

Oritani Financial Corp. has higher revenue and earnings than Atlantic Coast Financial Corporation. Oritani Financial Corp. is trading at a lower price-to-earnings ratio than Atlantic Coast Financial Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Oritani Financial Corp. beats Atlantic Coast Financial Corporation on 11 of the 14 factors compared between the two stocks.

About Oritani Financial Corp.

Oritani Financial Corp. is a holding company for Oritani Bank (the Bank). The Bank offers a range of retail and commercial loan and deposit products. The Bank operates in the New Jersey Counties of Bergen, Hudson, Essex and Passaic. The Bank’s loan portfolio includes residential loans, residential commercial real estate loans, credit or grocery retail commercial real estate loans, other commercial real estate loans, and construction and land loans. Its investment securities are classified as held to maturity, including mortgage-backed securities, and available for sale, including equity securities and mortgage-backed securities. Its deposits include checking (non-interest and interest-bearing demand deposits), money market deposit accounts, savings accounts and time deposits. The Bank offers personal banking services, such as mobile banking, and online banking and others services, and business banking services, such as business accounts and business services.

About Atlantic Coast Financial Corporation

Atlantic Coast Financial Corporation is a thrift holding company. The Company, through its subsidiary, Atlantic Coast Bank (the Bank), a federally chartered and insured stock savings bank supervised by the Office of the Comptroller of the Currency (the OCC), serves the Northeast Florida, Central Florida and Southeast Georgia markets. The Bank focuses on attracting deposits and investing those funds primarily in loans, including commercial real estate loans, consumer loans, first mortgages on owner-occupied, one- to four-family residences and home equity loans. Additionally, the Bank invests funds in multi-family residential loans, commercial business loans, and commercial and residential construction loans. The Bank originates commercial real estate loans and commercial and industrial loans with small to mid-size businesses for the purposes of purchasing real estate and inventory, financing equipment, and providing working capital.

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