Head-To-Head Review: Kearny Financial (NASDAQ:KRNY) vs. Cortland Bancorp (NASDAQ:CLDB)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Kearny Financial 16.80% 3.64% 0.65%
Cortland Bancorp 26.40% 14.41% 1.32%

Insider & Institutional Ownership

63.2% of Kearny Financial shares are held by institutional investors. Comparatively, 1.6% of Cortland Bancorp shares are held by institutional investors. 3.6% of Kearny Financial shares are held by insiders. Comparatively, 9.5% of Cortland Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Kearny Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Cortland Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%.

Valuation and Earnings

This table compares Kearny Financial and Cortland Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kearny Financial $250.89 million 4.75 $42.14 million N/A N/A
Cortland Bancorp $33.46 million 2.94 $8.84 million N/A N/A

Kearny Financial has higher revenue and earnings than Cortland Bancorp.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kearny Financial and Cortland Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 0 1 0 0 2.00
Cortland Bancorp 0 0 0 0 N/A

Kearny Financial currently has a consensus price target of $12.50, suggesting a potential downside of 2.34%. Given Kearny Financial’s higher probable upside, equities research analysts clearly believe Kearny Financial is more favorable than Cortland Bancorp.

Volatility and Risk

Kearny Financial has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Cortland Bancorp has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Summary

Kearny Financial beats Cortland Bancorp on 7 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.

Cortland Bancorp Company Profile

Cortland Bancorp operates as the bank holding company for The Cortland Savings and Banking Company that provides commercial and retail banking services in Northeastern Ohio and Western Pennsylvania. Its deposit products include demand deposits, savings, money market, time deposit, and checking accounts. The company's loan portfolio comprises commercial loans consisting of commercial, financial loans, real estate construction and development loans, commercial real estate loans, small business lending, and trade financing; and consumer loans, such as residential real estate, home equity, and installment loans. It also provides brokerage and investment services; asset management services; night depository services, automated teller services, safe deposit boxes, and other services; and Internet and mobile banking options. As of February 4, 2019, it operated through 14 offices located in the Summit, Trumbull, Mahoning, Portage, and Ashtabula counties in Northeast Ohio. The company was founded in 1892 and is headquartered in Cortland, Ohio.

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