Comparison between Alerus Financial (NASDAQ:ALRS) and Washington Federal (NASDAQ:WAFD)


Alerus Financial (NASDAQ:ALRSGet a rating) and Federal Washington (NASDAQ:WAFDGet a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on valuation strength, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Dividends

Alerus Financial pays an annual dividend of $0.72 per share and has a dividend yield of 3.2%. Washington Federal pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. Alerus Financial pays 26.8% of its profits as a dividend. Washington Federal pays 31.6% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Washington Federal has increased its dividend for 13 consecutive years. Alerus Financial is clearly the best dividend-paying stock, given its higher yield and lower payout ratio.

Institutional and insider ownership

39.5% of Alerus Financial shares are held by institutional investors. By comparison, 80.5% of federal stocks in Washington are held by institutional investors. 6.9% of Alerus Financial shares are held by company insiders. By comparison, 1.6% of federal shares in Washington are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.

Benefits and evaluation

This chart compares revenue, earnings per share, and valuation of Alerus Financial and Washington Federal.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Alerus Financial $240.04 million 1.63 $52.68 million $2.69 8.41
Washington Federal $652.17 million 3.31 $183.62 million $3.04 10.88

Washington Federal has higher revenue and profit than Alerus Financial. Alerus Financial trades at a lower price-to-earnings ratio than Washington Federal, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a breakdown of current ratings and price targets for Alerus Financial and Washington Federal, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Alerus Financial 0 1 0 0 2.00
Washington Federal 0 0 1 0 3.00

Alerus Financial currently has a consensus target price of $29.00, indicating a potential upside of 28.21%. Washington Federal has a consensus target price of $39.00, indicating a potential upside of 17.86%. Given Alerus Financial’s possible higher upside, research analysts clearly believe that Alerus Financial is more favorable than Washington Federal.

Volatility and risk

Alerus Financial has a beta of 0.74, suggesting its stock price is 26% less volatile than the S&P 500. By comparison, Washington Federal has a beta of 0.76, suggesting its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Alerus Financial and Washington Federal.

Net margins Return on equity return on assets
Alerus Financial 20.86% 13.52% 1.47%
Washington Federal 31.21% 11.50% 1.07%

Summary

Washington Federal beats Alerus Financial on 11 of 17 factors compared between the two stocks.

About Alerus Financial

(Get a rating)

Alerus Financial Corporation, through its subsidiary, Alerus Financial, National Association, provides various financial services to businesses and consumers. The Company operates through four segments: Banking, Pension and Benefits, Wealth Management and Mortgages. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, term and savings deposits, checking accounts and certificates of deposit; and cash management products, including electronic receivables management, remote deposit capture, vault services, merchant services and other cash management services. The Company also offers commercial loans, business term loans, lines of credit and commercial real estate loans, as well as loans for construction and land development; consumer credit products, including residential first mortgages; installment loans and lines of credit; and second mortgages. In addition, it offers pension plan administration and investment advisory services, employee stock ownership plan, trust services, payroll, health savings accounts and other employee benefits services. , as well as individual retirement accounts; and financial planning, investment management, personal and business trust, estate administration and custodial services. In addition, the Company provides debit and credit cards, online banking, mobile banking/wallet services, payments, private banking, payroll accounts, flexible spending accounts, mobile banking services. administration and government health insurance program. It offers banking services through fourteen offices in North Dakota, Minnesota and Arizona; and pension and benefit plans in 50 states through offices in Michigan, Minnesota and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.

About the Federal Government of Washington

(Get a rating)

Washington Federal, Inc. operates as a bank holding company for Washington Federal Bank, National Association, which provides lending, deposit, insurance, and other banking services in the United States. The Company offers deposit products, including business and personal checking accounts, term deposit certificates, as well as money market accounts and passbook savings accounts. It also offers single-family residences, land construction, acquisition and development, consumer land, multi-family residences, commercial and industrial buildings, commercial real estate, home loans, business loans and to consumption. Additionally, the Company offers insurance brokerage services, such as personal and business insurance policies; owns and markets real estate; mobile and internet banking; and debit and credit cards, and acts 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.



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