Comparing Kearny Financial (KRNY) & Charter Financial Corp (Maryland) (CHFN)

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Kearny Financial (NASDAQ: CHFN) and Charter Financial Corp (Maryland) (NASDAQ:CHFN) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

61.3% of Kearny Financial shares are held by institutional investors. Comparatively, 66.6% of Charter Financial Corp (Maryland) shares are held by institutional investors. 3.8% of Kearny Financial shares are held by insiders. Comparatively, 12.1% of Charter Financial Corp (Maryland) 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.

Earnings & Valuation

This table compares Kearny Financial and Charter Financial Corp (Maryland)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kearny Financial $184.69 million 7.26 $19.60 million N/A N/A
Charter Financial Corp (Maryland) $75.10 million 5.06 $14.43 million $0.95 26.22

Kearny Financial has higher revenue and earnings than Charter Financial Corp (Maryland).

Profitability

This table compares Kearny Financial and Charter Financial Corp (Maryland)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kearny Financial 10.61% 2.57% 0.52%
Charter Financial Corp (Maryland) 19.70% 7.34% 0.98%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kearny Financial and Charter Financial Corp (Maryland), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 1 0 0 0 1.00
Charter Financial Corp (Maryland) 0 1 0 0 2.00

Kearny Financial presently has a consensus price target of $13.50, indicating a potential downside of 1.10%. Charter Financial Corp (Maryland) has a consensus price target of $24.00, indicating a potential downside of 3.65%. Given Kearny Financial’s higher possible upside, research analysts plainly believe Kearny Financial is more favorable than Charter Financial Corp (Maryland).

Volatility & Risk

Kearny Financial has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Charter Financial Corp (Maryland) has a beta of 0.3, meaning that its stock 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%. Charter Financial Corp (Maryland) pays an annual dividend of $0.34 per share and has a dividend yield of 1.4%. Charter Financial Corp (Maryland) pays out 35.8% of its earnings in the form of a dividend. Charter Financial Corp (Maryland) has increased its dividend for 2 consecutive years. Charter Financial Corp (Maryland) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Charter Financial Corp (Maryland) beats Kearny Financial on 8 of the 15 factors compared between the two stocks.

About Kearny Financial

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.

About Charter Financial Corp (Maryland)

Charter Financial Corporation operates as the holding company for CharterBank, a federally-chartered savings bank that provides various banking products and services to individuals and businesses in the United States. The company's deposit products include checking, money market, regular savings, and term certificate accounts, as well as noninterest-bearing demand deposits. It also offers commercial real estate loans, one- to four-family residential mortgage loans, construction loans, and investment securities; and commercial business loans, home equity loans, and lines of credit, as well as other consumer loans, including loans on deposits, automobile loans, mobile home loans, and various other installment loans. In addition, the company provides various community banking services, such as online banking and bill payment services, mobile banking, online cash management, safe deposit box rentals, and debit and ATM card services. It operates through a network of 22 branch offices in Metro Atlanta, the I-85 corridor south to Auburn, Alabama, and the Florida Gulf Coast. The company was founded in 1954 and is based in West Point, Georgia.

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