Capitol Federal Financial (CFFN) vs Heritage Financial Corporation (HFWA)

Capitol Federal Financial and Heritage Financial Corporation are both Banks Regional companies. Capitol Federal Financial and Heritage Financial Corporation are of similar size ($1.2B and $1.1B). Capitol Federal Financial trades at the lower P/E: 13.4× against 13.4×. Heritage Financial Corporation grew revenue faster over the last twelve months: 17.2% against 7.53%. Heritage Financial Corporation has the higher net margin (20.4% vs 18.7%) and the higher return on invested capital (5.20% vs 2.54%). Both pay a dividend; Capitol Federal Financial yields more (5.74% vs 5.04%). Across the 20 metrics below, Heritage Financial Corporation leads on 12 and Capitol Federal Financial on 8.

Valuation

Metric CFFN HFWA Banks Regional median
P/E 13.35 13.41 12.15
P/S 2.43 3.08 2.37
P/B 1.05 1.06 1.21
Price to free cash flow 15.05 14.59 10.80
EV/EBITDA n/m n/m —
EV/Sales 5.81 3.04 2.27
Earnings yield 7.49% 7.46% 8.11%
Free cash flow yield 6.65% 6.85% 8.98%

Profitability

Metric CFFN HFWA Banks Regional median
Gross margin 51.74% 77.18% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 18.67% 20.44% 18.66%
Free cash flow margin 16.14% 21.11% 21.18%
Return on equity 8.00% 7.80% 10.64%
Return on assets 0.85% 1.01% 1.13%
Return on invested capital 2.54% 5.20% 8.33%

Growth

Metric CFFN HFWA Banks Regional median
Revenue growth (TTM) 7.53% 17.17% 6.61%
EPS growth (last fiscal year) 79.31% 58.06% —
Revenue growth, 5-year CAGR 5.30% 5.96% 12.30%
Net income growth, 5-year CAGR 1.03% 7.72% 9.71%

Health

Metric CFFN HFWA Banks Regional median
Debt to equity 1.60 0.17 0.22
Current ratio 1.20 0.83 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CFFN HFWA Banks Regional median
Dividend yield 5.74% 5.04% 3.75%
Payout ratio 0.79 0.38 0.27

Size

Metric CFFN HFWA Banks Regional median
Market cap 1.09b 1.16b 921.07m

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