Critical Survey: Kentucky First Federal Bancorp (NASDAQ:KFFB) & Bluegreen Vacations (OTCMKTS:BVHBB)

Kentucky First Federal Bancorp (NASDAQ:KFFB) and Bluegreen Vacations (OTCMKTS:BVHBB) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Valuation and Earnings

This table compares Kentucky First Federal Bancorp and Bluegreen Vacations’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kentucky First Federal Bancorp	$7.56 million	4.06	$930,000.00	($0.05)	-76.00
Bluegreen Vacations	$919.43 million	1.33	$64.39 million	$3.71	19.41

Bluegreen Vacations has higher revenue and earnings than Kentucky First Federal Bancorp. Kentucky First Federal Bancorp is trading at a lower price-to-earnings ratio than Bluegreen Vacations, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Kentucky First Federal Bancorp has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Bluegreen Vacations has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kentucky First Federal Bancorp and Bluegreen Vacations, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kentucky First Federal Bancorp	0	0	0	0	N/A
Bluegreen Vacations	0	0	0	0	N/A

Profitability

This table compares Kentucky First Federal Bancorp and Bluegreen Vacations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kentucky First Federal Bancorp	-2.39%	-0.70%	-0.10%
Bluegreen Vacations	6.26%	24.03%	4.46%

Dividends

Kentucky First Federal Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 10.5%. Bluegreen Vacations pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Kentucky First Federal Bancorp pays out -800.0% of its earnings in the form of a dividend. Bluegreen Vacations pays out 21.6% 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. Kentucky First Federal Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

3.2% of Kentucky First Federal Bancorp shares are owned by institutional investors. Comparatively, 20.7% of Bluegreen Vacations shares are owned by institutional investors. 5.3% of Kentucky First Federal Bancorp shares are owned by insiders. Comparatively, 88.2% of Bluegreen Vacations shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Bluegreen Vacations beats Kentucky First Federal Bancorp on 10 of the 13 factors compared between the two stocks.

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. It accepts 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. It also invests in mortgage-backed securities. The company was incorporated in 2005 and is based in Hazard, Kentucky. Kentucky First Federal Bancorp is a subsidiary of First Federal MHC.

About Bluegreen Vacations

Bluegreen Vacations Holding Corporation operates as a vacation ownership company. The company markets and sells vacation ownership interests (VOI); and manages resorts in leisure and urban destinations, including Orlando, Las Vegas, Myrtle Beach, Charleston and New Orleans, and others. It also provides resort management, mortgage, title, reservation, and construction design and development services; and financing to qualified VOI purchasers, as well as management services to the vacation club and homeowners' associations. The company was founded in 1966 and is headquartered in Boca Raton, Florida.