Financial Survey: California BanCorp (NASDAQ:BCAL) versus WaFd (NASDAQ:WAFD)

California BanCorp (NASDAQ:BCAL) and WaFd (NASDAQ:WAFD) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares California BanCorp and WaFd”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California BanCorp	$237.07 million	2.97	$63.06 million	$1.84	11.90
WaFd	$1.41 billion	1.71	$226.07 million	$3.17	10.26

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

Dividends

California BanCorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. WaFd pays an annual dividend of $1.08 per share and has a dividend yield of 3.3%. California BanCorp pays out 21.7% of its earnings in the form of a dividend. WaFd pays out 34.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. WaFd has raised its dividend for 2 consecutive years. WaFd is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

55.4% of California BanCorp shares are held by institutional investors. Comparatively, 83.7% of WaFd shares are held by institutional investors. 8.1% of California BanCorp shares are held by insiders. Comparatively, 1.5% of WaFd shares are held by 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.

Risk and Volatility

California BanCorp has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, WaFd has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for California BanCorp and WaFd, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California BanCorp	0	1	5	0	2.83
WaFd	0	4	1	0	2.20

California BanCorp presently has a consensus price target of $24.50, indicating a potential upside of 11.87%. WaFd has a consensus price target of $36.25, indicating a potential upside of 11.40%. Given California BanCorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe California BanCorp is more favorable than WaFd.

Profitability

This table compares California BanCorp and WaFd’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California BanCorp	26.01%	10.44%	1.49%
WaFd	18.47%	8.98%	0.89%

Summary

California BanCorp beats WaFd on 11 of the 17 factors compared between the two stocks.

About California BanCorp

Southern California Bancorp operates as the holding company for Bank of Southern California, N.A. that provides various financial products to individuals, professionals, and small-to medium-sized businesses. The company offers checking, personal and business savings, and money market accounts, as well as certificates of deposit. It also provides home equity lines of credit, business loans and lines of credit, commercial real estate and construction loans, small business administration loans, letters of credit, and personal and business credit cards. In addition, the company provides cash vault, sweep accounts, and remote deposit capture services; online and mobile banking services; courier service; lockbox services; and merchant services. It operates branches in San Diego, Orange, Ventura, Los Angeles, and Riverside counties, as well as the Inland Empire. The company was founded in 2001 and is headquartered in San Diego, California.

About WaFd

WaFd, Inc operates as the bank holding company for Washington Federal Bank that provides lending, depository, insurance, and other banking services in the United States. The company offers deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts. It also provides single-family dwellings, construction, land acquisition and development, consumer lot, multi-family residential, commercial real estate, home equity, business, and consumer loans, as well as commercial and industrial loans. In addition, the company offers insurance brokerage services, such as individual and business insurance policies; holds and markets real estate properties; and debit and credit cards, as well as acts as the trustee. It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate. The company was formerly known as Washington Federal, Inc. and changed its name to WaFd, Inc in September 2023. WaFd, Inc was founded in 1917 and is headquartered in Seattle, Washington.