Reviewing HomeStreet (NASDAQ:HMST) and Kentucky First Federal Bancorp (NASDAQ:KFFB)

HomeStreet (NASDAQ:HMST) and Kentucky First Federal Bancorp (NASDAQ:KFFB) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Earnings and Valuation

This table compares HomeStreet and Kentucky First Federal Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HomeStreet	$358.19 million	0.69	-$144.34 million	($7.40)	-1.76
Kentucky First Federal Bancorp	$16.53 million	1.48	-$1.72 million	($0.13)	-23.27

Kentucky First Federal Bancorp has lower revenue, but higher earnings than HomeStreet. Kentucky First Federal Bancorp is trading at a lower price-to-earnings ratio than HomeStreet, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

HomeStreet has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500.

Institutional and Insider Ownership

74.7% of HomeStreet shares are held by institutional investors. Comparatively, 3.2% of Kentucky First Federal Bancorp shares are held by institutional investors. 4.6% of HomeStreet shares are held by insiders. Comparatively, 3.9% of Kentucky First Federal Bancorp 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HomeStreet	-42.54%	-3.83%	-0.20%
Kentucky First Federal Bancorp	-5.60%	-0.26%	-0.03%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for HomeStreet and Kentucky First Federal Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HomeStreet	0	2	2	0	2.50
Kentucky First Federal Bancorp	0	0	0	0	0.00

HomeStreet currently has a consensus target price of $14.1667, indicating a potential upside of 8.56%. Given HomeStreet’s stronger consensus rating and higher possible upside, analysts plainly believe HomeStreet is more favorable than Kentucky First Federal Bancorp.

Summary

HomeStreet beats Kentucky First Federal Bancorp on 8 of the 14 factors compared between the two stocks.

About HomeStreet

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services in the Western United States. The company offers personal and business checking, savings, interest-bearing negotiable order of withdrawal, and money market accounts, as well as certificates of deposit; credit cards; insurance; and treasury management services. Its loan products include commercial real estate (CRE), multifamily, construction and land development, owner occupied CRE and commercial business loans; and single family, home equity, and other loans. In addition, the company offers online, mobile, and telephone banking. It serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company operates through branches and ATMs. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.

About Kentucky First Federal Bancorp

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