Head to Head Comparison: Axos Financial (NASDAQ:AX) and BankUnited (NYSE:BKU)


Axos Financial (NASDAQ:AXGet Rating) and BankUnited (NYSE:BKUGet Rating) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Axos Financial 32.23% 16.41% 1.61%
BankUnited 35.89% 12.61% 1.07%

Valuation and Earnings

This table compares Axos Financial and BankUnited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axos Financial $723.12 million 2.91 $215.71 million $3.91 9.03
BankUnited $1.09 billion 2.96 $414.98 million $4.25 9.31

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

Risk and Volatility

Axos Financial has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, BankUnited has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Axos Financial and BankUnited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axos Financial 0 0 0 0 N/A
BankUnited 3 2 2 0 1.86

BankUnited has a consensus target price of $47.14, indicating a potential upside of 19.17%. Given BankUnited’s higher possible upside, analysts plainly believe BankUnited is more favorable than Axos Financial.

Institutional & Insider Ownership

76.2% of Axos Financial shares are owned by institutional investors. Comparatively, 97.3% of BankUnited shares are owned by institutional investors. 4.7% of Axos Financial shares are owned by insiders. Comparatively, 0.9% of BankUnited shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

BankUnited beats Axos Financial on 9 of the 13 factors compared between the two stocks.

Axos Financial Company Profile (Get Rating)

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. 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 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 term 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 messaging 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.

BankUnited Company Profile (Get Rating)

BankUnited, Inc. operates as the bank holding company for BankUnited, a national banking association that provides a range of banking services in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts; certificates of deposit; and treasury, commercial payment, and cash management services. Its loans portfolio includes commercial loans, including equipment loans, secured and unsecured lines of credit, formula-based loans, owner-occupied commercial real estate term loans and lines of credit, mortgage warehouse lines, letters of credit, commercial credit cards, small business administration and U.S. department of agriculture product offerings, export-import bank financing products, trade finance, and business acquisition finance credit facilities; commercial real estate loans; residential mortgages; and other consumer loans. The company also offers online, mobile, and telephone banking services. As of December 31, 2021, it operated through a network of 63 banking centers located in 13 Florida counties; and 4 banking centers in the New York metropolitan area. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was incorporated in 2009 and is headquartered in Miami Lakes, Florida.



Receive News & Ratings for Axos Financial Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Axos Financial and related companies with MarketBeat.com’s FREE daily email newsletter.

Source link