Kearny Financial (NASDAQ: KRNY) and Capitol Federal Financial (NASDAQ:CFFN) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Kearny Financial pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.5%.
Insider and Institutional Ownership
51.2% of Kearny Financial shares are held by institutional investors. Comparatively, 74.5% of Capitol Federal Financial shares are held by institutional investors. 3.8% of Kearny Financial shares are held by company insiders. Comparatively, 2.2% of Capitol Federal Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Kearny Financial has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.
Valuation and Earnings
This table compares Kearny Financial and Capitol Federal Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kearny Financial||$150.44 million||9.60||$18.60 million||N/A||N/A|
|Capitol Federal Financial||$335.38 million||5.58||$84.13 million||N/A||N/A|
Capitol Federal Financial has higher revenue and earnings than Kearny Financial.
This table compares Kearny Financial and Capitol Federal Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capitol Federal Financial||28.17%||6.59%||0.98%|
This is a summary of current recommendations and price targets for Kearny Financial and Capitol Federal Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capitol Federal Financial||0||2||0||0||2.00|
Kearny Financial currently has a consensus price target of $13.50, indicating a potential downside of 4.26%. Capitol Federal Financial has a consensus price target of $13.75, indicating a potential upside of 1.63%. Given Capitol Federal Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Capitol Federal Financial is more favorable than Kearny Financial.
Capitol Federal Financial beats Kearny Financial on 9 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. It offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. The company also provides various loans comprising 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, it sells insurance products to its customers and the general public through a third party networking arrangement. As of August 16, 2017, the company operated 42 branches located in northern and central New Jersey, and Brooklyn and Staten Island, New York. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.
About Capitol Federal Financial
Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products comprising savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposits. It also provides various loan products, such as one- to four-family residential real estate loans; construction-to-permanent loans; consumer loans comprising home equity loans and lines of credit, home improvement loans, auto loans, and loans secured by savings deposits; and commercial real estate loans consisting of various property types, including hotels, office and retail buildings, senior housing facilities, and multi-family dwellings located in Texas, Missouri, Kansas, Nebraska, Colorado, Arkansas, California, and Montana. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; and invests in various securities. It operates a network of 47 branches, which include 37 traditional branches and 10 in-store branches located in 9 counties throughout Kansas and 3 counties in Missouri. The company was founded in 1893 and is headquartered in Topeka, Kansas.
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