Financial Institutions (NASDAQ:FISI) and Pathward Financial (NASDAQ:CASH) Comparison

Pathward Financial ( NASDAQ:CASH – Get Free Report ) and Financial Institutions ( NASDAQ:FISI – Get Free Report ) are both small-cap financial companies, but which is the better investment? We’ll compare the two companies based on their earnings strength, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

return

This table compares Pathward Financial and Financial Institutions’ net margins, return on equity and return on assets.

Institutional and privileged ownership

92.7% of Pathward Financial shares are held by institutional investors. Comparatively, 60.5% of financial institutions’ shares are held by institutional investors. 0.7% of Pathward Financial shares are held by insiders. Comparatively, 2.7% of financial institutions’ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and big money managers believe a stock will outperform the market over the long term.

Volatility and risk

Pathward Financial has a beta of 0.68, meaning its share price is 32% less volatile than the S&P 500. Comparatively, Financial Institutions has a beta of 0.89, meaning its share price is 11% less volatile than the S&P 500.

dividends

Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. The financial institution pays an annual dividend of $1.20 per share and has a dividend yield of 4.9%. Pathward Financial pays 3.0% of earnings as a dividend. Financial institutions pay 47.8% of earnings as dividends. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next few years. Financial institutions have increased their dividends for 13 consecutive years. Financials is clearly the best dividend stock given its higher yield and longer history of dividend growth.

Rating and Earnings

This table compares Pathward Financial and Financial Institutions’ core revenue, earnings per share (EPS) and valuation.

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

Analyst ratings

This is a breakdown of recent ratings for Pathward Financial and Financial Institutions as provided by MarketBeat.

Pathward Financial currently has a consensus target price of $71.00, suggesting a potential upside of 9.08%. Financial Institutions has a consensus price target of $22.00, suggesting a potential downside of 10.46%. Given Pathward Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Pathward Financial is more favorable than Financial Institutions.

Summary

Pathward Financial beats financial institutions in 12 of the 17 factors compared between the two stocks.

About Pathward Financial

(Get a free report)

Pathward Financial, Inc. operates as the bank holding company for Pathward, the National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial and Corporate Services/Other. They offer demand deposit accounts, savings accounts and money market savings accounts. The Company also offers commercial financing products, which include term loans, asset-based loans, factoring, lease financing, insurance premium financing, government-guaranteed loans and other commercial financial products; consumer credit products; other consumer finance services; tax services, which include short-term payday advance loans and short-term electronic return issuer advance loans; and deposit financing services. In addition, it issues prepaid cards; and provide payment solutions such as accepting, processing and settling credit and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is headquartered in Sioux Falls, South Dakota.

About financial institutions

(Get a free report)

Financial Institutions, Inc. operates as the holding company for Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities and businesses in New York. The company provides checking and savings account programs, including money market accounts, certificates of deposit, major investment and individual retirement accounts and other qualified plan accounts, as well as NOW accounts. Its loan products include term loans and lines of credit; short and medium term commercial loans for working capital, business expansion and equipment purchase; commercial business loans for the agricultural industry; commercial mortgages; one- to four-family residential mortgage loans, home improvement loans, closed-end home equity loans and home equity lines of credit; and consumer loans such as automobiles, secured installments, and personal loans. The company offers personal insurance products including auto, homeowners, boat, recreational vehicle, homeowner and umbrella coverage; commercial insurance including property, liability, auto, inland vessel, workers’ compensation, bond, crop and umbrella insurance products; and financial services such as life and disability insurance, health care supplements, long-term care, annuities, mutual funds and retirement plans. In addition, it provides personalized investment advisory, wealth management, investment consulting and retirement planning services, and operates a real estate investment trust that owns residential mortgages and commercial real estate loans. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.

Get news and reviews for Pathward Financial Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Pathward Financial and related companies with MarketBeat.com’s FREE daily email newsletter.