washington federal (NASDAQ:WAFDget rating) and National Park (New York Stock Exchange:PRKget rating) are both small-cap financial companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations, and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Washington Federal and Park National, provided by MarketBeat.com.

sales ratings retention ratings Buy grades Strong purchase ratings Rating Score
washington federal 0 0 1 0 3.00
National Park 0 0 0 0 N/A

Washington Federal currently has a consensus price target of $40.00, indicating 31.32% upside potential. Given Washington Federal’s higher upside potential, analysts clearly believe that Washington Federal is more favorable than Park National.

Cost effectiveness

This table compares the net margins, return on equity, and return on assets for Washington Federal and Park National.

net margins Return on equity Return on assets
washington federal 29.95% 10.65% 1.00%
National Park 31.96% 13.66% 1.51%

Internal and institutional property

80.5% of Washington Federal shares are held by institutional investors. Comparatively, 60.9% of Park National shares are held by institutional investors. 1.6% of Washington Federal shares are held by insiders of the company. Comparatively, 2.5% of Park National’s shares are held by insiders of the company. Strong institutional ownership is an indication that large fund managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Washington Federal pays an annual dividend of $0.96 per share and has a dividend yield of 3.1%. Park National pays an annual dividend of $4.16 per share and has a dividend yield of 3.6%. Washington Federal pays 35.0% of its earnings as a dividend. Park National pays out 45.5% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for years to come. Washington Federal has increased its dividend for 13 years in a row and Park National has increased its dividend for 5 years in a row.

Risk and volatility

Washington Federal has a beta of 0.76, meaning its share price is 24% less volatile than the S&P 500. Comparatively, Park National has a beta of 0.79, meaning its share price is stock is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares top-tier revenue, earnings per share, and valuation for Washington Federal and Park National.

Gross income Price/Sales Ratio Net income earnings per share Rate of earnings on price
washington federal $652.17 million 3.07 $183.62 million $2.74 11.17
National Park $475.80 million 3.99 $153.95 million $9.15 12.78

Washington Federal has higher revenues and profits than Park National. Washington Federal trades at a lower price-earnings ratio than Park National, indicating that it is currently the more affordable of the two stocks.

Summary

Park National outperforms Washington Federal in 9 of 16 factors compared between the two stocks.

About Washington Federal (get rating)

Washington Federal, Inc. operates as the bank holding company for Washington Federal Bank, a national association that provides loans, deposits, insurance and other banking services in the United States. The company offers deposit products, including personal and business checking accounts and time certificates of deposit, as well as money market accounts and passbook savings accounts. It also offers single-family residential, construction, land acquisition and development, consumer lots, multi-family residential, commercial and industrial, commercial real estate, real estate, commercial and consumer loans. In addition, the company offers insurance brokerage services, such as individual and commercial insurance policies; owns and markets real estate; Internet and mobile banking services; and debit and credit cards, as well as acting as trustee. It serves consumers, medium and large businesses, and commercial real estate owners and developers. As of September 30, 2021, the company had 219 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, and Texas. Washington Federal, Inc. was founded in 1917 and is headquartered in Seattle, Washington.

About National Park (get rating)

Park National Corporation operates as the bank holding company for Park National Bank providing trust and commercial banking services in small and medium population areas. The company offers demand deposits, savings and term accounts; trust and estate management services; cash management services; security deposit operations; electronic fund transfers; Internet and mobile banking solutions with bill payment service; Credit cards; and various additional banking services for individual customers. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, financing for acquisitions and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans for developers and owners of commercial real estate; consumer loans, such as car loans and leases; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and business loans. In addition, the company offers aircraft financing and asset management services. As of December 31, 2021, it operated 96 financial services offices and a network of 116 ATMs in 26 Ohio counties, 1 Kentucky county, 3 North Carolina counties, and 4 South Carolina counties. The company was founded in 1908 and is headquartered in Newark, Ohio.



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