Kearny Financial (KRNY) versus Flagstar Bancorp (FBC) Head to Head Analysis

Kearny Financial (NASDAQ: KRNY) and Flagstar Bancorp (NYSE:FBC) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kearny Financial $150.44 million 9.56 $18.60 million N/A N/A
Flagstar Bancorp $997.00 million 2.06 $63.00 million $2.47 14.45

Flagstar Bancorp has higher revenue and earnings than Kearny Financial.

Insider & Institutional Ownership

51.2% of Kearny Financial shares are held by institutional investors. Comparatively, 97.4% of Flagstar Bancorp shares are held by institutional investors. 3.8% of Kearny Financial shares are held by company insiders. Comparatively, 62.9% of Flagstar Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Kearny Financial and Flagstar Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 1 0 0 0 1.00
Flagstar Bancorp 0 1 8 0 2.89

Kearny Financial currently has a consensus target price of $13.50, indicating a potential downside of 3.91%. Flagstar Bancorp has a consensus target price of $40.17, indicating a potential upside of 12.57%. Given Flagstar Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Flagstar Bancorp is more favorable than Kearny Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Kearny Financial 9.92% 2.01% 0.42%
Flagstar Bancorp 6.76% 10.62% 0.89%

Dividends

Kearny Financial pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. Flagstar Bancorp does not pay a dividend.

Risk & Volatility

Kearny Financial has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Flagstar Bancorp has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Summary

Flagstar Bancorp beats Kearny Financial on 10 of the 14 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. It offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. The company also provides various loans comprising 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, it sells insurance products to its customers and the general public through a third party networking arrangement. As of August 16, 2017, the company operated 42 branches located in northern and central New Jersey, and Brooklyn and Staten Island, New York. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.

Flagstar Bancorp Company Profile

Flagstar Bancorp, Inc. operates as a savings and loan holding company for Flagstar Bank, FSB that provides commercial, small business, and consumer banking services to individuals and businesses in the United States. Its Community Banking segment offers various products, such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer and commercial loans, commercial real estate loans, equipment finance and leasing, home builder finance loans, and warehouse lines of credit. It also provides other financial services, including consumer and corporate card services, customized treasury management solutions, merchant services, and capital markets services, such as loan syndications, as well as wealth management products and services. This segment serves consumer, business, and mortgage lending customers through its branch banking, business and commercial banking, government banking, warehouse lending, and loans held-for-investment (LHFI) portfolio groups. The company's Mortgage Originations segment originates, acquires, and sells one-to-four family residential mortgage loans through home loan and national call centers, Internet and unaffiliated banks, mortgage banking, and brokerage companies. Its Mortgage Servicing segment offers services and subservices mortgage loans; and the servicing of residential mortgages for its LHFI portfolio, as well as noninterest-bearing escrow services. As of January 23, 2018, the company provided banking services through 99 branches in Michigan; and home loans through a wholesale network of brokers and correspondents in 50 states, as well as 89 retail locations in 29 states. Flagstar Bancorp, Inc. was founded in 1987 and is headquartered in Troy, Michigan.

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