Head-To-Head Review: Kentucky First Federal Bancorp (NASDAQ:KFFB) vs. Broadway Financial (NASDAQ:BYFC)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kentucky First Federal Bancorp	1	0	0	0	1.00
Broadway Financial	1	0	0	0	1.00

Volatility & Risk

Kentucky First Federal Bancorp has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kentucky First Federal Bancorp	$19.74 million	1.51	$180,000.00	$0.02	184.50
Broadway Financial	$63.76 million	1.05	$1.93 million	($0.13)	-56.23

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kentucky First Federal Bancorp	0.92%	0.38%	0.05%
Broadway Financial	3.18%	1.46%	0.15%

Insider and Institutional Ownership

3.2% of Kentucky First Federal Bancorp shares are held by institutional investors. Comparatively, 12.1% of Broadway Financial shares are held by institutional investors. 3.9% of Kentucky First Federal Bancorp shares are held by company insiders. Comparatively, 4.1% of Broadway Financial shares are held by company 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.

Summary

Broadway Financial beats Kentucky First Federal Bancorp on 8 of the 11 factors compared between the two stocks.

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.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.