Analyzing BV Financial (NASDAQ:BVFL) and Axos Financial (NYSE:AX)

BV Financial (NASDAQ:BVFL) and Axos Financial (NYSE:AX) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares BV Financial and Axos Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BV Financial	23.83%	6.09%	1.40%
Axos Financial	22.10%	18.67%	1.89%

Valuation and Earnings

This table compares BV Financial and Axos Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BV Financial	$37.70 million	4.69	$11.72 million	$1.09	14.00
Axos Financial	$1.20 billion	3.03	$450.01 million	$7.44	8.55

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

Volatility and Risk

BV Financial has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Axos Financial has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Insider and Institutional Ownership

42.7% of BV Financial shares are held by institutional investors. Comparatively, 83.8% of Axos Financial shares are held by institutional investors. 7.8% of BV Financial shares are held by company insiders. Comparatively, 5.1% of Axos Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for BV Financial and Axos Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BV Financial	0	0	0	0	0.00
Axos Financial	0	2	4	0	2.67

Axos Financial has a consensus target price of $84.17, indicating a potential upside of 32.32%. Given Axos Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Axos Financial is more favorable than BV Financial.

Summary

Axos Financial beats BV Financial on 10 of the 14 factors compared between the two stocks.

About BV Financial

BV Financial, Inc. operates as the holding company for BayVanguard Bank that provides various financial services to individuals and businesses in Maryland. The company offers checking and money market accounts, savings accounts, and certificates of deposits. Its loan products include real estate, home equity, construction, lot, auto, boat, and other personal loans; and commercial lending products, such as commercial equipment/installation, commercial real estate, construction, investment real estate, lines of credit, and SBA loans, as well as loans for short-term real estate purchase, renovation, and sale projects. The company offers ATM, overdraft, safe deposit, bill pay, remote deposit capture, ACH origination, merchant, and online banking services. BV Financial, Inc. was founded in 1873 and is headquartered in Baltimore, Maryland.

About Axos Financial

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.