Head to Head Survey: Capitol Federal Financial (NASDAQ:CFFN) vs. Kentucky First Federal Bancorp (NASDAQ:KFFB)

Capitol Federal Financial (NASDAQ:CFFN) and Kentucky First Federal Bancorp (NASDAQ:KFFB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Capitol Federal Financial and Kentucky First Federal Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capitol Federal Financial	0	2	0	0	2.00
Kentucky First Federal Bancorp	0	0	0	0	0.00

Capitol Federal Financial currently has a consensus target price of $6.75, indicating a potential downside of 2.60%. Given Capitol Federal Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Capitol Federal Financial is more favorable than Kentucky First Federal Bancorp.

Earnings and Valuation

This table compares Capitol Federal Financial and Kentucky First Federal Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capitol Federal Financial	$382.09 million	2.41	$38.01 million	$0.29	23.90
Kentucky First Federal Bancorp	$16.53 million	1.28	-$1.72 million	($0.21)	-12.48

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

Profitability

This table compares Capitol Federal Financial and Kentucky First Federal Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capitol Federal Financial	9.95%	4.69%	0.50%
Kentucky First Federal Bancorp	-10.41%	-1.58%	-0.21%

Risk & Volatility

Capitol Federal Financial has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Insider & Institutional Ownership

88.5% of Capitol Federal Financial shares are owned by institutional investors. Comparatively, 3.2% of Kentucky First Federal Bancorp shares are owned by institutional investors. 2.2% of Capitol Federal Financial shares are owned by company insiders. Comparatively, 3.9% 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 will outperform the market over the long term.

Summary

Capitol Federal Financial beats Kentucky First Federal Bancorp on 12 of the 13 factors compared between the two stocks.

About Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.

About Kentucky First Federal Bancorp

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. It accepts 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. It also invests in mortgage-backed securities. The company was incorporated in 2005 and is based in Hazard, Kentucky. Kentucky First Federal Bancorp is a subsidiary of First Federal MHC.