Kearny Financial (NASDAQ:KRNY) and Kentucky First Federal Bancorp (NASDAQ:KFFB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Earnings & Valuation

This table compares Kearny Financial and Kentucky First Federal Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kearny Financial $250.89 million 4.61 $42.14 million N/A N/A
Kentucky First Federal Bancorp $12.94 million 4.97 $810,000.00 N/A N/A

Kearny Financial has higher revenue and earnings than Kentucky First Federal Bancorp.

Profitability

This table compares Kearny Financial and Kentucky First Federal Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kearny Financial 16.72% 3.81% 0.65%
Kentucky First Federal Bancorp 6.91% 1.37% 0.28%

Dividends

Kearny Financial pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Kentucky First Federal Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 5.2%. Kearny Financial has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

65.2% of Kearny Financial shares are owned by institutional investors. Comparatively, 2.7% of Kentucky First Federal Bancorp shares are owned by institutional investors. 4.6% of Kearny Financial shares are owned by insiders. Comparatively, 5.0% of Kentucky First Federal Bancorp 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.

Volatility & Risk

Kearny Financial has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Kearny Financial and Kentucky First Federal Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 0 1 0 0 2.00
Kentucky First Federal Bancorp 0 0 0 0 N/A

Kearny Financial currently has a consensus target price of $12.50, suggesting a potential downside of 6.86%. Given Kearny Financial’s higher possible upside, equities analysts clearly believe Kearny Financial is more favorable than Kentucky First Federal Bancorp.

Summary

Kearny Financial beats Kentucky First Federal Bancorp on 8 of the 13 factors compared between the two stocks.

About Kearny Financial

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. The company offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. It also provides various loans, such as one-to-four family mortgage loans; commercial mortgages, including loans secured by multi-family, mixed-use, and nonresidential properties; secured and unsecured business loans; consumer loans, such as home equity loans, home equity lines of credit, account loans, overdraft lines of credit, vehicle loans, personal loans, and loans secured by savings accounts and certificates of deposit; and construction loans to builders/developers and individual homeowners. In addition, the company engages in investment activities. As of August 15, 2018, it operated a total of 54 retail branch offices located throughout northern and central New Jersey, and Brooklyn and Staten Island, New York. The company was founded in 1884 and is headquartered in Fairfield, New Jersey.

About Kentucky First Federal Bancorp

Kentucky First Federal Bancorp operates as the holding company for First Federal Savings and Loan Association of Hazard, and Frankfort First Bancorp, Inc. that provide various banking products and services in Kentucky. Its deposit products include passbook savings and certificate accounts, checking accounts, and individual retirement accounts. The company's loan portfolio comprises one-to four-family residential mortgage loans; construction loans; mortgage loans secured by multi-family property; nonresidential loans that are secured by commercial office buildings, churches, and properties used for other purposes; commercial non-mortgage loans; and consumer loans, such as home equity lines of credit, loans secured by savings deposits, automobile loans, and unsecured or personal loans. In addition, it invests in mortgage-backed securities; and provides insurance products and services. As of October 19, 2018, it operated through seven banking offices. The company was incorporated in 2005 and is based in Hazard, Kentucky. Kentucky First Federal Bancorp is a subsidiary of First Federal Mutual Holding Company.

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