TFS Financial (NASDAQ:TFSL) and Kearny Financial (NASDAQ:KRNY) Head to Head Survey

TFS Financial (NASDAQ:TFSLGet Rating) and Kearny Financial (NASDAQ:KRNYGet Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
TFS Financial 15.97% 3.75% 0.46%
Kearny Financial 31.11% 7.49% 1.06%

Dividends

TFS Financial pays an annual dividend of $1.13 per share and has a dividend yield of 8.0%. Kearny Financial pays an annual dividend of $0.44 per share and has a dividend yield of 3.7%. TFS Financial pays out 470.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kearny Financial pays out 43.6% of its earnings in the form of a dividend. TFS Financial has increased its dividend for 7 consecutive years and Kearny Financial has increased its dividend for 5 consecutive years. TFS Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

8.8% of TFS Financial shares are owned by institutional investors. Comparatively, 64.4% of Kearny Financial shares are owned by institutional investors. 1.3% of TFS Financial shares are owned by insiders. Comparatively, 6.2% of Kearny Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TFS Financial $444.65 million 8.87 $81.01 million $0.24 58.54
Kearny Financial $259.11 million 3.36 $63.23 million $1.01 11.85

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

Volatility and Risk

TFS Financial has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Kearny Financial has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for TFS Financial and Kearny Financial, as reported by MarketBeat.

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

Kearny Financial has a consensus target price of $14.00, suggesting a potential upside of 17.35%. Given Kearny Financial’s higher probable upside, analysts plainly believe Kearny Financial is more favorable than TFS Financial.

Summary

Kearny Financial beats TFS Financial on 9 of the 15 factors compared between the two stocks.

TFS Financial Company Profile (Get Rating)

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and 37 full-service branches and 7 loan production offices located throughout the states of Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation operates as a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

Kearny Financial Company Profile (Get Rating)

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 multi-family and nonresidential real estate mortgage loans, commercial term loans and lines of credit, one- to four-family first mortgage loans, and home equity loans and lines of credit; loans to individuals for the construction or renovation of one- to four-family residences, or for the construction of commercial real estate or multi-family residential buildings; overdraft lines of credit; and personal loans. In addition, the company engages in investment activities. As of August 18, 2021, it operated a total of 48 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.

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