Financial Contrast: Kentucky First Federal Bancorp (NASDAQ:KFFB) vs. West Bancorporation (NASDAQ:WTBA)

Kentucky First Federal Bancorp (NASDAQ:KFFB) and West Bancorporation (NASDAQ:WTBA) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kentucky First Federal Bancorp	0	1	0	0	2.00
West Bancorporation	0	2	0	1	2.67

West Bancorporation has a consensus price target of $24.00, suggesting a potential downside of 7.30%. Given West Bancorporation’s stronger consensus rating and higher possible upside, analysts plainly believe West Bancorporation is more favorable than Kentucky First Federal Bancorp.

Institutional and Insider Ownership

3.2% of Kentucky First Federal Bancorp shares are held by institutional investors. Comparatively, 44.3% of West Bancorporation shares are held by institutional investors. 3.9% of Kentucky First Federal Bancorp shares are held by insiders. Comparatively, 4.6% of West Bancorporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Kentucky First Federal Bancorp has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kentucky First Federal Bancorp	2.68%	1.12%	0.14%
West Bancorporation	16.08%	14.59%	0.89%

Earnings & Valuation

This table compares Kentucky First Federal Bancorp and West Bancorporation”s gross 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	1.90	$180,000.00	$0.06	77.25
West Bancorporation	$202.45 million	2.17	$32.56 million	$1.91	13.55

West Bancorporation has higher revenue and earnings than Kentucky First Federal Bancorp. West Bancorporation 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.

Summary

West Bancorporation beats Kentucky First Federal Bancorp on 13 of the 14 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 West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.