PFS vs TFSL: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
TFSL is the larger of the two ($4.62B market cap): the incumbent the market prices for continued execution (42.24x forward earnings, beta 0.73). PFS is the smaller challenger ($2.90B), cheaper on forward earnings (8.61x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
PFS vs TFSL: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | PFS | TFSL | What it tells you |
|---|---|---|---|
| Market cap | $2.90B | $4.62B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 8.61 | 42.24 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 9.26 | 45.76 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.82 | 0.73 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 58% of range | 52% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.00 | 2.35 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: PFS is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how PFS and TFSL affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. PFS and TFSL share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined PFS and TFSL exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Provident Financial Services (PFS) do?
Provident Financial Services, Inc. (NYSE: PFS) is the holding company for Provident Bank, a community and commercial bank founded in 1839 and headquartered in Iselin, New Jersey. Its core business is gathering deposits and making loans, with a heavy tilt toward commercial real estate and commercial and industrial lending across New Jersey, southern New York, and eastern Pennsylvania. Beyond spread banking, Provident runs meaningful fee businesses: Provident Protection Plus (insurance agency) and Beacon Trust (wealth and fiduciary services). The May 2024 all-stock merger with Lakeland Bancorp roughly doubled the balance sheet to about $24 billion in assets, $19 billion in loans, and $19 billion in deposits, making PFS one of the larger New Jersey-based banks.
What does TFS Financial Corporation (TFSL) do?
TFS Financial Corporation is the holding company for Third Federal Savings and Loan Association of Cleveland, a savings and loan founded in 1938 by Ben and Gerome Stefanski and still run by the family (Marc Stefanski is chairman and CEO). It does one thing: it takes in savings deposits and certificates of deposit, mostly in Ohio and Florida, and lends that money as first mortgages and home equity loans and lines of credit across roughly two dozen states. At June 30, 2026 it held ~$18.1 billion of assets, ~$16.2 billion of loans (about $10.7 billion of residential mortgages and $5.5 billion of home equity balances) and ~$10.0 billion of deposits, with the rest funded largely by Federal Home Loan Bank borrowings. Its credit record is among the cleanest in US banking, with net charge-offs that are often close to zero.
PFS vs TFSL: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- PFS drivers: Lakeland merger scale and cost synergies; Net interest margin and deposit costs.
- TFSL drivers: Margin recovery as deposit costs fall; Home equity lending growth.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Commercial real estate concentration is the most watched risk, since a large share of the loan book is CRE and office and multifamily exposure could pressure credit costs if property values or occupancy weaken. For TFSL, the biggest risk is interest rates.
PFS or TFSL: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick PFS if you believe its drivers more; TFSL if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the PFS and TFSL guides.
PFS vs TFSL: the full fundamentals
PFS. At $22.31 on October 16, 2026, PFS trades near 9 times trailing earnings, under 9 times forward estimates, and about 1 times book value, a valuation typical of a slow-growth regional bank even after a 25% one-year gain. Quarterly net income has run between roughly $72 million and $83 million over the past four quarters, and EPS has beaten consensus each time. Figures are approximate and move with interest rates, loan growth, and credit provisions.
TFSL. TFSL's multiples look stretched next to typical savings institutions, which often trade near 1x book and 10 to 15x earnings. The premium reflects two features: the high dividend yield created by the MHC waiver and the market's view that the company's margin has more room to recover as funding costs fall. Market cap is calculated on all ~280 million shares, including the ~81% held by the MHC, so the price paid for the public float is effectively a bet on a structure as much as on earnings. Fiscal fourth quarter results (year ending September 30) usually arrive in late October or early November.
Headline figures (approximate, October 2026): PFS shows market cap ~$2.9B, total assets ~$24B, revenue (ttm, net interest + fees) ~$894M, +4% yoy in Q2 2026, net income (ttm) ~$313M (~35% profit margin); TFSL shows share price ~$16.40, market cap ~$4.6B, net interest income (ttm) ~$305M, net income (ttm) ~$100M.
The bottom line: PFS vs TFSL
PFS and TFSL are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined PFS and TFSL exposure against your real portfolio. It is not an investment adviser.
Wondering how PFS or TFSL fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Provident Financial Services with AI
Connect the broker you already use and ask Walnut's AI how PFS fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between PFS and TFSL?
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Provident Financial Services, Inc. TFS Financial Corporation is the holding company for Third Federal Savings and Loan Association of Cleveland, a savings and loan founded in 1938 by Ben and Gerome Stefanski and still run by the family (Marc Stefanski is chairman and CEO). They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is PFS or TFSL the better stock?
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Neither is universally better. TFSL is the larger incumbent; PFS is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, PFS or TFSL?
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On forward P/E (as of October 2026), PFS trades at 8.61x and TFSL at 42.24x, so PFS is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both PFS and TFSL?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of PFS vs TFSL?
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PFS: Commercial real estate concentration is the most watched risk, since a large share of the loan book is CRE and office and multifamily exposure could pressure credit costs if property values or occupancy weaken. As a New Jersey regional bank, PFS is geographically concentrated and exposed to the local economy and to deposit competition from larger banks. Interest rate moves cut both ways: falling rates can compress asset yields while rising rates lift deposit costs and can create unrealized securities losses. After a strong run the shares have slipped about 7% over the past three months, so expectations into the October 28 report (consensus EPS $0.61) are a near-term swing factor. Integration risk from the Lakeland merger, the added interest cost of the new subordinated debt, regulatory capital requirements, and the general cyclicality of bank credit provisions round out the picture. TFSL: The biggest risk is interest rates. Third Federal holds a large book of 30-year fixed-rate mortgages, so a renewed rise in short-term rates would push deposit and borrowing costs up faster than loan yields and squeeze a margin that is already thin by bank standards at ~1.9%. Return on equity of ~6% leaves little room for error. The second risk is the dividend structure: the waiver depends on an annual vote of MHC members and the Federal Reserve not objecting. If waivers were ever refused, the company could not afford its current per-share dividend and would likely cut it, which would remove the main support for the stock. Valuation is a third risk; at ~45x trailing earnings and ~2.3x book, TFSL is priced well above most thrifts, so disappointing margin progress could compress the multiple. Concentration matters too: most deposits come from Ohio and Florida and the loan book is almost entirely residential real estate, so a housing downturn or a run of hurricane-related losses in Florida would hit directly. Finally, public holders have almost no governance influence, because the MHC controls the vote, and trading liquidity is limited by the small public float.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell PFS or TFSL; figures are approximate and dated (as of October 2026). Verify current data before investing.