Axos Financial (AX) & The Competition Critical Review

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Axos Financial (NYSE: AX) is one of 93 public companies in the “Federal savings institutions” industry, but how does it weigh in compared to its competitors? We will compare Axos Financial to similar businesses based on the strength of its risk, profitability, institutional ownership, analyst recommendations, earnings, dividends and valuation.

Volatility and Risk

Axos Financial has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Axos Financial’s competitors have a beta of 0.45, suggesting that their average stock price is 55% less volatile than the S&P 500.

Profitability

This table compares Axos Financial and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axos Financial 27.57% 17.81% 1.74%
Axos Financial Competitors 14.28% 9.18% 0.84%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Axos Financial and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axos Financial 0 0 1 1 3.50
Axos Financial Competitors 382 1251 1144 77 2.32

Axos Financial presently has a consensus price target of $43.00, suggesting a potential upside of 45.61%. As a group, “Federal savings institutions” companies have a potential upside of 20.70%. Given Axos Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Axos Financial is more favorable than its competitors.

Institutional & Insider Ownership

73.9% of Axos Financial shares are owned by institutional investors. Comparatively, 37.9% of shares of all “Federal savings institutions” companies are owned by institutional investors. 6.5% of Axos Financial shares are owned by company insiders. Comparatively, 9.4% of shares of all “Federal savings institutions” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Axos Financial and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Axos Financial $546.02 million $152.41 million 11.91
Axos Financial Competitors $899.82 million $169.16 million 18.41

Axos Financial’s competitors have higher revenue and earnings than Axos Financial. Axos Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Axos Financial beats its competitors on 9 of the 13 factors compared.

About Axos Financial

Axos Financial, Inc. operates as the holding company for BofI Federal Bank that provides consumer and business banking products in the United States. The company offers deposits products, including consumer and business checking, demand, savings, and time deposit accounts. It also provides single family and multifamily mortgage secured lending products; commercial real estate secured and commercial lending products; specialty finance factoring products; prime loans to customers secured by new and used automobiles; and term unsecured personal loans to individual borrowers, as well as overdraft lines of credit. In addition, the company offers prepaid card and refund transfer, debit card or ATM card, portfolio management, online bill payment, money transfer, overdraft protection, online and mobile banking, and text message banking services. 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 San Diego, California.

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