Critical Analysis: Kearny Financial (NASDAQ:KRNY) versus BV Financial (NASDAQ:BVFL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kearny Financial	-20.05%	3.31%	0.33%
BV Financial	23.83%	6.09%	1.40%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kearny Financial	0	1	1	0	2.50
BV Financial	0	0	0	0	0.00

Kearny Financial currently has a consensus price target of $7.75, indicating a potential upside of 31.80%. Given Kearny Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Kearny Financial is more favorable than BV Financial.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kearny Financial	$152.16 million	2.50	-$86.67 million	($1.13)	-5.20
BV Financial	$37.70 million	4.14	$11.72 million	$1.09	13.53

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

Institutional & Insider Ownership

71.0% of Kearny Financial shares are held by institutional investors. Comparatively, 42.7% of BV Financial shares are held by institutional investors. 8.6% of Kearny Financial shares are held by insiders. Comparatively, 11.8% of BV Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Kearny Financial has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, BV Financial has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Summary

BV Financial beats Kearny Financial on 8 of the 14 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. 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, such as multi-family and nonresidential real estate mortgage loans, commercial term loans and lines of credit, one- to four-family residential mortgage loans, and home equity loans and lines of credit; loans to individuals, builders, or developers for the construction of multi-family residential buildings or commercial real estate, or for the construction or renovation of one- to four-family residences; overdraft lines of credit; and personal loans. In addition, it engages in the investment activities. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.

About BV Financial

BV Financial, Inc. operates as the holding company for BayVanguard Bank that provides various financial services to individuals and businesses in Maryland. The company offers checking and money market accounts, savings accounts, and certificates of deposits. Its loan products include real estate, home equity, construction, lot, auto, boat, and other personal loans; and commercial lending products, such as commercial equipment/installation, commercial real estate, construction, investment real estate, lines of credit, and SBA loans, as well as loans for short-term real estate purchase, renovation, and sale projects. The company offers ATM, overdraft, safe deposit, bill pay, remote deposit capture, ACH origination, merchant, and online banking services. BV Financial, Inc. was founded in 1873 and is headquartered in Baltimore, Maryland.