First Bancorp of Indiana (OTCMKTS:FBPI) and Kentucky First Federal Bancorp (NASDAQ:KFFB) Critical Analysis

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

Risk and Volatility

First Bancorp of Indiana has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
First Bancorp of Indiana N/A N/A N/A
Kentucky First Federal Bancorp 17.65% 4.23% 0.66%

Valuation and Earnings

This table compares First Bancorp of Indiana and Kentucky First Federal Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Bancorp of Indiana N/A N/A N/A N/A N/A
Kentucky First Federal Bancorp $12.75 million 4.66 $1.82 million $0.27 26.78

Kentucky First Federal Bancorp has higher revenue and earnings than First Bancorp of Indiana.

Dividends

First Bancorp of Indiana pays an annual dividend of $0.62 per share and has a dividend yield of 2.9%. Kentucky First Federal Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 5.5%. Kentucky First Federal Bancorp pays out 148.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

3.5% of Kentucky First Federal Bancorp shares are held by institutional investors. 20.0% of First Bancorp of Indiana shares are held by insiders. Comparatively, 4.7% of Kentucky First Federal Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Bancorp of Indiana and Kentucky First Federal Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Bancorp of Indiana 0 0 0 0 N/A
Kentucky First Federal Bancorp 0 0 0 0 N/A

Summary

Kentucky First Federal Bancorp beats First Bancorp of Indiana on 7 of the 9 factors compared between the two stocks.

First Bancorp of Indiana Company Profile (Get Rating)

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking products and services to individuals and business customers. The company accepts various deposits; and offers loans that include commercial one-to-four family mortgage, commercial and multi-family mortgage, secured commercial business, unsecured commercial business, residential one-to-four family mortgage, residential second mortgage, and consumer loans, as well as home equity lines of credit. It is also involved in the management of investment securities portfolios; and provides safe deposit box, check cashing and cashier's check, wire transfer, and brokerage services. The company operates 9 full-service offices in Southwestern Indiana; and 1 loan production office in Henderson, Kentucky. First Bancorp of Indiana, Inc. was founded in 1904 and is based in Evansville, Indiana.

Kentucky First Federal Bancorp Company Profile (Get Rating)

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. The company accepts deposit products include passbook savings and certificate accounts, checking accounts, and individual retirement accounts. Its 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. The company also invests in mortgage-backed securities. It operates through seven banking offices. The company was incorporated in 2005 and is based in Hazard, Kentucky. Kentucky First Federal Bancorp is a subsidiary of First Federal MHC.

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