Oconee Federal Financial (NASDAQ:OFED) and LegacyTexas Financial Group (NASDAQ:LTXB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Oconee Federal Financial and LegacyTexas Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oconee Federal Financial 0 0 0 0 N/A
LegacyTexas Financial Group 0 5 1 0 2.17

LegacyTexas Financial Group has a consensus price target of $46.88, indicating a potential upside of 19.15%. Given LegacyTexas Financial Group’s higher probable upside, analysts clearly believe LegacyTexas Financial Group is more favorable than Oconee Federal Financial.

Risk & Volatility

Oconee Federal Financial has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, LegacyTexas Financial Group has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Dividends

Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. LegacyTexas Financial Group pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. LegacyTexas Financial Group pays out 34.5% of its earnings in the form of a dividend. LegacyTexas Financial Group has raised its dividend for 3 consecutive years. LegacyTexas Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

4.2% of Oconee Federal Financial shares are owned by institutional investors. Comparatively, 86.0% of LegacyTexas Financial Group shares are owned by institutional investors. 5.2% of Oconee Federal Financial shares are owned by insiders. Comparatively, 3.2% of LegacyTexas Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Oconee Federal Financial and LegacyTexas Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oconee Federal Financial 21.00% 4.74% 0.81%
LegacyTexas Financial Group 33.18% 13.45% 1.53%

Valuation and Earnings

This table compares Oconee Federal Financial and LegacyTexas Financial Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oconee Federal Financial $18.41 million 8.17 $3.03 million N/A N/A
LegacyTexas Financial Group $464.22 million 4.12 $154.18 million $2.90 13.57

LegacyTexas Financial Group has higher revenue and earnings than Oconee Federal Financial.

Summary

LegacyTexas Financial Group beats Oconee Federal Financial on 11 of the 15 factors compared between the two stocks.

Oconee Federal Financial Company Profile

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern South Carolina and the northeast area of Georgia. The company's deposit products include demand, NOW, money market, savings, certificates of deposit, and individual retirement accounts. Its loan portfolio comprises one-to-four family residential mortgage loans; home equity loans and lines of credit; nonresidential real estate loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer loans. Oconee Federal Financial Corp. operates through its executive office and seven branch offices located in Oconee County, South Carolina; Stephens County, Georgia; and Rabun County, Georgia. The company was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. is a subsidiary of Oconee Federal, MHC.

LegacyTexas Financial Group Company Profile

LegacyTexas Financial Group, Inc. operates as the holding company for LegacyTexas Bank that provides various banking products and services in the United States. Its deposit products include interest-bearing and non-interest-bearing demand accounts, savings, money market, certificates of deposit, and individual retirement accounts. The company's lending products comprise commercial and consumer real estate loans; secured and unsecured commercial and industrial loans; permanent loans secured by first and second mortgages on one- to four-family residences; construction and land loans; and secured and unsecured consumer loans, including new and used automobile loans, recreational vehicle loans, and loans secured by savings deposits. It also provides insurance and title services. As of January 23, 2018, the company had 3 administrative offices, 44 full-service branches, and 1 commercial loan production office located in Houston, Texas, as well as a Warehouse Purchase Program office located in Littleton, Colorado. The company was formerly known as ViewPoint Financial Group, Inc. and changed its name to LegacyTexas Financial Group, Inc. in January 2015. LegacyTexas Financial Group, Inc. is headquartered in Plano, Texas.

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