Northeast Bancorp (NASDAQ:NBN) versus Kentucky First Federal Bancorp (NASDAQ:KFFB) Financial Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northeast Bancorp	24.16%	17.34%	1.98%
Kentucky First Federal Bancorp	4.04%	1.71%	0.22%

Risk & Volatility

Northeast Bancorp has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Institutional and Insider Ownership

3.2% of Kentucky First Federal Bancorp shares are held by institutional investors. 14.2% of Northeast Bancorp 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Northeast Bancorp and Kentucky First Federal Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Bancorp	$351.00 million	2.85	$83.44 million	$10.37	11.76
Kentucky First Federal Bancorp	$19.74 million	1.85	$180,000.00	$0.10	45.20

Northeast Bancorp has higher revenue and earnings than Kentucky First Federal Bancorp. Northeast Bancorp 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Northeast Bancorp and Kentucky First Federal Bancorp, as provided by MarketBeat.com.

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

Northeast Bancorp presently has a consensus target price of $117.50, suggesting a potential downside of 3.68%. Given Northeast Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Northeast Bancorp is more favorable than Kentucky First Federal Bancorp.

Summary

Northeast Bancorp beats Kentucky First Federal Bancorp on 12 of the 14 factors compared between the two stocks.

About Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.

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.