Comparing Malvern Bancorp (MLVF) & Kearny Financial (KRNY)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Kearny Financial 12.37% 1.68% 0.40%
Malvern Bancorp 37.03% 6.64% 0.70%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kearny Financial $108.54 million 10.70 $17.30 million $0.21 67.15
Malvern Bancorp $22.67 million 6.74 $12.43 million $1.93 12.28

Kearny Financial has higher revenue and earnings than Malvern Bancorp. Malvern Bancorp is trading at a lower price-to-earnings ratio than Kearny Financial, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

66.8% of Kearny Financial shares are owned by institutional investors. Comparatively, 58.1% of Malvern Bancorp shares are owned by institutional investors. 2.7% of Kearny Financial shares are owned by company insiders. Comparatively, 3.2% of Malvern Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kearny Financial and Malvern Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 1 0 1 0 2.00
Malvern Bancorp 0 1 0 0 2.00

Kearny Financial presently has a consensus target price of $15.00, indicating a potential upside of 6.38%. Malvern Bancorp has a consensus target price of $24.00, indicating a potential upside of 1.27%. Given Kearny Financial’s higher possible upside, analysts clearly believe Kearny Financial is more favorable than Malvern Bancorp.

Dividends

Kearny Financial pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Malvern Bancorp does not pay a dividend. Kearny Financial pays out 57.1% of its earnings in the form of a dividend.

Summary

Kearny Financial beats Malvern Bancorp on 8 of the 14 factors compared between the two stocks.

About Kearny Financial

Kearny Bank is principally engaged in the business of attracting deposits from the general public at its 41 locations in New Jersey and using these deposits, together with other funds, to originate or purchase loans for its portfolio and invest in securities. Loans originated or purchased by the Bank generally include loans collateralized by residential and commercial real estate augmented by secured and unsecured loans to businesses and consumers. The investment securities purchased by the Bank generally include United States agency mortgage-backed securities, United States government and agency debentures and bank-qualified municipal obligations.

Receive News & Ratings for Kearny Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kearny Financial and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply