TFSL vs WAFD

For growth investors, TFS Financial Corporation (TFSL) is the stronger pick with 4.

4% revenue growth year-over-year, versus -1. 6% for WaFd, Inc. (WAFD). WaFd, Inc. (WAFD) offers the better valuation at 13. 6x trailing P/E (10. 9x forward), making it the more compelling value choice. Analysts rate TFS Financial Corporation (TFSL) a "Hold" — based on 4 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, WaFd, Inc.

(WAFD) is the cheapest at 13. 6x versus TFS Financial Corporation at 47. 2x. On forward P/E, WaFd, Inc. is actually cheaper at 10. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: WaFd, Inc. wins at 3. 55x versus TFS Financial Corporation's 35. 22x.

Over the past 5 years, WaFd, Inc.

(WAFD) delivered a total return of +22. 3%, compared to +5. 4% for TFS Financial Corporation (TFSL). Over 10 years, the gap is even starker: WAFD returned +84. 0% versus TFSL's +38. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), TFS Financial Corporation (TFSL) is the lower-risk stock at 0.

76β versus WaFd, Inc. 's 0. 81β — meaning WAFD is approximately 8% more volatile than TFSL relative to the S&P 500. On balance sheet safety, WaFd, Inc. (WAFD) carries a lower debt/equity ratio of 60% versus 3% for TFS Financial Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TFS Financial Corporation (TFSL) is pulling ahead at 4.

4% versus -1. 6% for WaFd, Inc. (WAFD). On earnings-per-share growth, the picture is similar: TFS Financial Corporation grew EPS 14. 3% year-over-year, compared to 5. 2% for WaFd, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

WaFd, Inc.

(WAFD) is the more profitable company, earning 16. 0% net margin versus 11. 5% for TFS Financial Corporation — meaning it keeps 16. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WAFD leads at 20. 5% versus 14. 5% for TFSL. At the gross margin level — before operating expenses — WAFD leads at 50. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, WaFd, Inc. (WAFD) is the more undervalued stock at a PEG of 3. 55x versus TFS Financial Corporation's 35. 22x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, WaFd, Inc. (WAFD) trades at 10. 9x forward P/E versus 45. 8x for TFS Financial Corporation — 34. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TFSL: -0. 7% to $15. 00.

All stocks in this comparison pay dividends.

WaFd, Inc. (WAFD) offers the highest yield at 3. 0%, versus 1. 4% for TFS Financial Corporation (TFSL).

For long-horizon retirement investors, TFS Financial Corporation (TFSL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

76), 1. 4% yield). Both have compounded well over 10 years (TFSL: +38. 5%, WAFD: +84. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: TFSL is a small-cap quality compounder stock; WAFD is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.