Contrasting Kearny Financial (NASDAQ:KRNY) and AMB Financial (OTCMKTS:AMFC)

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

Risk and Volatility

Kearny Financial has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, AMB Financial has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Kearny Financial 31.11% 7.61% 1.05%
AMB Financial N/A N/A N/A

Institutional & Insider Ownership

64.4% of Kearny Financial shares are owned by institutional investors. Comparatively, 2.8% of AMB Financial shares are owned by institutional investors. 6.2% of Kearny Financial shares are owned by insiders. Comparatively, 37.7% of AMB Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Kearny Financial pays an annual dividend of $0.44 per share and has a dividend yield of 4.0%. AMB Financial pays an annual dividend of $0.05 per share and has a dividend yield of 0.2%. Kearny Financial pays out 43.6% of its earnings in the form of a dividend. Kearny Financial has increased its dividend for 5 consecutive years. Kearny Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings for Kearny Financial and AMB Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 0 1 0 0 2.00
AMB Financial 0 0 0 0 N/A

Kearny Financial presently has a consensus target price of $14.00, indicating a potential upside of 26.81%. Given Kearny Financial’s higher probable upside, equities research analysts plainly believe Kearny Financial is more favorable than AMB Financial.

Earnings and Valuation

This table compares Kearny Financial and AMB Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kearny Financial $259.11 million 3.00 $63.23 million $1.01 10.93
AMB Financial N/A N/A N/A N/A N/A

Kearny Financial has higher revenue and earnings than AMB Financial.

Summary

Kearny Financial beats AMB Financial on 9 of the 11 factors compared between the two stocks.

About Kearny Financial (Get Rating)

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. The company offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. It 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 first mortgage loans, and home equity loans and lines of credit; loans to individuals for the construction or renovation of one- to four-family residences, or for the construction of commercial real estate or multi-family residential buildings; overdraft lines of credit; and personal loans. In addition, the company engages in investment activities. As of August 18, 2021, it operated a total of 48 branch offices located throughout northern and central New Jersey and Brooklyn and Staten Island, New York. The company was founded in 1884 and is headquartered in Fairfield, New Jersey.

About AMB Financial (Get Rating)

AMB Financial Corp. operates as the bank holding company for American Community Bank of Indiana that provides financial services to customers primarily located within northwest Indiana. It accepts savings, checking, individual retirement, and money market deposit accounts; and certificates of deposit. The company also offers mortgage loans; construction loans; lot loans; home equity line of credit and loans; and vehicle loans for motorcycles, wave runners, snowmobiles, motor homes, campers/travel trailers, and boats and boat trailers. In addition, it provides merchant, remote deposit, receivables financing, and ACH banking services; online, mobile, voice, and youth banking services; investment, estate, business, and personal financial planning services; debit/ATM and credit cards; money order and e-statement services; cashier's checks; health savings account; and safe deposit boxes. The company provides its products and services through its main office in Indiana, as well as through its four full-service banking offices located in Munster, Dyer, Hammond, and Crown Point, Indiana. AMB Financial Corp. was founded in 1910 and is headquartered in Saint John, Indiana.

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