Comparing Pathfinder Bancorp (NASDAQ:PBHC) and Kearny Financial (NASDAQ:KRNY)

Pathfinder Bancorp (NASDAQ:PBHC) and Kearny Financial (NASDAQ:KRNY) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Dividends

Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Kearny Financial pays an annual dividend of $0.44 per share and has a dividend yield of 5.6%. Pathfinder Bancorp pays out -63.5% of its earnings in the form of a dividend. Kearny Financial pays out 77.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pathfinder Bancorp has increased its dividend for 1 consecutive years.

Volatility and Risk

Pathfinder Bancorp has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Kearny Financial has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathfinder Bancorp	-4.96%	-3.20%	-0.27%
Kearny Financial	10.39%	4.61%	0.45%

Valuation & Earnings

This table compares Pathfinder Bancorp and Kearny Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Bancorp	$79.15 million	0.83	-$1.93 million	($0.63)	-21.28
Kearny Financial	$343.53 million	1.49	$26.08 million	$0.57	13.82

Kearny Financial has higher revenue and earnings than Pathfinder Bancorp. Pathfinder Bancorp is trading at a lower price-to-earnings ratio than Kearny Financial, 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 Pathfinder Bancorp and Kearny Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathfinder Bancorp	1	0	0	0	1.00
Kearny Financial	0	2	1	0	2.33

Kearny Financial has a consensus target price of $9.50, suggesting a potential upside of 20.56%. Given Kearny Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Kearny Financial is more favorable than Pathfinder Bancorp.

Insider & Institutional Ownership

26.7% of Pathfinder Bancorp shares are held by institutional investors. Comparatively, 71.0% of Kearny Financial shares are held by institutional investors. 15.4% of Pathfinder Bancorp shares are held by insiders. Comparatively, 7.4% of Kearny Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Kearny Financial beats Pathfinder Bancorp on 14 of the 17 factors compared between the two stocks.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.

About Kearny Financial

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. It offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. The company 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 residential mortgage loans, and home equity loans and lines of credit; loans to individuals, builders, or developers for the construction of multi-family residential buildings or commercial real estate, or for the construction or renovation of one- to four-family residences; overdraft lines of credit; and personal loans. In addition, it engages in the investment activities. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.