Provident Financial (NASDAQ:PROV) and Kentucky First Federal Bancorp (NASDAQ:KFFB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
This table compares Provident Financial and Kentucky First Federal Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kentucky First Federal Bancorp||7.65%||1.55%||0.31%|
This is a summary of recent ratings for Provident Financial and Kentucky First Federal Bancorp, 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|
Provident Financial presently has a consensus price target of $23.75, indicating a potential upside of 84.54%. Given Provident Financial’s higher possible upside, research analysts plainly believe Provident Financial is more favorable than Kentucky First Federal Bancorp.
Risk & Volatility
Provident Financial has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Kentucky First Federal Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 6.1%. Provident Financial pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Provident Financial has increased its dividend for 8 consecutive years.
Insider & Institutional Ownership
59.9% of Provident Financial shares are owned by institutional investors. Comparatively, 2.6% of Kentucky First Federal Bancorp shares are owned by institutional investors. 14.4% of Provident Financial shares are owned by company insiders. Comparatively, 5.0% of Kentucky First Federal Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Provident Financial and Kentucky First Federal Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Provident Financial||$56.89 million||1.68||$4.42 million||$0.58||22.19|
|Kentucky First Federal Bancorp||$12.94 million||4.16||$810,000.00||N/A||N/A|
Provident Financial has higher revenue and earnings than Kentucky First Federal Bancorp.
Provident Financial beats Kentucky First Federal Bancorp on 10 of the 15 factors compared between the two stocks.
Provident Financial Company Profile
Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. It operates through two segments, Provident Bank and Provident Bank Mortgage. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. It also originates, purchases, and sells single-family mortgage loans, including second mortgages and equity lines of credit. In addition, the company offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 13 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.
Kentucky First Federal Bancorp Company Profile
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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