Analyzing FFBW (NASDAQ:FFBW) & Kearny Financial (NASDAQ:KRNY)

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

Valuation and Earnings

This table compares Kearny Financial and FFBW”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kearny Financial	$152.16 million	2.66	-$86.67 million	($1.13)	-5.54
FFBW	$11.90 million	5.42	$1.51 million	N/A	N/A

FFBW has lower revenue, but higher earnings than Kearny Financial.

Insider & Institutional Ownership

71.0% of Kearny Financial shares are held by institutional investors. 8.6% of Kearny Financial shares are held by insiders. Comparatively, 4.8% of FFBW shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Kearny Financial has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, FFBW has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Profitability

This table compares Kearny Financial and FFBW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kearny Financial	-20.05%	3.31%	0.33%
FFBW	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kearny Financial and FFBW, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kearny Financial	0	1	1	0	2.50
FFBW	0	0	0	0	0.00

Kearny Financial presently has a consensus target price of $7.75, suggesting a potential upside of 23.80%. Given Kearny Financial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kearny Financial is more favorable than FFBW.

Summary

Kearny Financial beats FFBW on 9 of the 12 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, such as multi-family and nonresidential real estate mortgage loans, commercial term loans and lines of credit, one- to four-family residential mortgage loans, and home equity loans and lines of credit; loans to individuals, builders, or developers for the construction of multi-family residential buildings or commercial real estate, or for the construction or renovation of one- to four-family residences; overdraft lines of credit; and personal loans. In addition, it engages in the investment activities. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.

About FFBW

FFBW, Inc. operates as the holding company for First Federal Bank of Wisconsin that provides banking products and services in the United States. It offers deposit accounts, including noninterest-bearing and interest-bearing checking accounts, money market accounts, statement savings, and health savings, as well as certificates of deposit. The company also provides various loans, which include one- to four family owner-occupied and investor-owned residential real estate, multifamily residential real estate, commercial real estate, commercial and industrial, and commercial development loans, as well as consumer loans, such as home equity lines of credit, new and used automobile loans, boat loans, recreational vehicle loans, and loans secured by certificates of deposit. FFBW, Inc. was founded in 1922 and is based in Brookfield, Wisconsin.