Analyzing Malvern Bancorp (MLVF) and Kearny Financial (KRNY)

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

Profitability

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

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

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.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Malvern Bancorp $22.67 million 6.73 $12.69 million $1.93 12.02
Kearny Financial $108.54 million 10.96 $17.71 million $0.21 67.15

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.

Analyst Ratings

This is a summary of recent ratings and target prices for Malvern Bancorp and Kearny Financial, as reported by MarketBeat.

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

Malvern Bancorp currently has a consensus price target of $24.00, indicating a potential upside of 3.45%. Kearny Financial has a consensus price target of $15.00, indicating a potential upside of 6.38%. Given Kearny Financial’s higher possible upside, analysts plainly believe Kearny Financial is more favorable than Malvern Bancorp.

Institutional and Insider Ownership

58.1% of Malvern Bancorp shares are held by institutional investors. Comparatively, 66.0% of Kearny Financial shares are held by institutional investors. 3.2% of Malvern Bancorp shares are held by insiders. Comparatively, 2.7% of Kearny Financial shares are held by 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.

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.

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