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

Valuation & Earnings

This table compares Kearny Financial and Northeast Indiana Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kearny Financial $184.69 million 6.78 $19.59 million N/A N/A
Northeast Indiana Bancorp $14.89 million 3.06 $3.41 million N/A N/A

Kearny Financial has higher revenue and earnings than Northeast Indiana Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Kearny Financial 12.42% 2.97% 0.58%
Northeast Indiana Bancorp 22.37% N/A N/A

Insider and Institutional Ownership

66.6% of Kearny Financial shares are held by institutional investors. 3.6% of Kearny Financial shares are held by company insiders. Comparatively, 19.8% of Northeast Indiana Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Kearny Financial has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Northeast Indiana Bancorp has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Dividends

Kearny Financial pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. Northeast Indiana Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%.

Analyst Ratings

This is a summary of current ratings for Kearny Financial and Northeast Indiana Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 1 0 0 0 1.00
Northeast Indiana Bancorp 0 0 0 0 N/A

Kearny Financial presently has a consensus price target of $13.50, indicating a potential upside of 3.93%. Given Kearny Financial’s higher possible upside, equities analysts clearly believe Kearny Financial is more favorable than Northeast Indiana Bancorp.

Summary

Kearny Financial beats Northeast Indiana Bancorp on 9 of the 12 factors compared between the two stocks.

Kearny Financial Company Profile

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. The company offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. It also provides various loans, such as 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, the company engages in investment activities. As of August 15, 2018, it operated a total of 54 retail branch offices located throughout northern and central New Jersey, and Brooklyn and Staten Island, New York. The company was founded in 1884 and is headquartered in Fairfield, New Jersey.

Northeast Indiana Bancorp Company Profile

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. It offers various personal products, including checking accounts, savings accounts, certificates of deposit, retirement accounts, health savings accounts, and direct deposits. The company's loan portfolio comprises mortgage loans, such as home purchases, refinances, new construction loans, and home equity/home improvement loans; installment loans consisting of auto loans, personal loans, short term notes, and savings account loans, as well as RV, ATV, and boat loans; and commercial loans, including lines of credit, letters of credit, equipment financing, and construction loans, as well as commercial loans comprising revolving line of credit, term loans, real estate loans, letter of credit, and small business administration loans. It also provides debit and credit cards, safe deposit boxes, online banking services, merchant services, and cash management services, as well as treasury management and merchant deposit capture services. In addition, the company offers various financial services to individual and corporate clients, including brokerage accounts, retail funds, and wealth management products, as well as insurance products and retirement plans. Northeast Indiana Bancorp, Inc. operates three full service locations in Huntington; one full service location in Warsaw; and two full service locations in Fort Wayne, Indiana. The company is based in Huntington, Indiana.

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