Analyzing Bancorp (NASDAQ:TBBK) and Kentucky First Federal Bancorp (NASDAQ:KFFB)

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

Volatility and Risk

Kentucky First Federal Bancorp has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kentucky First Federal Bancorp	8.91%	3.88%	0.51%
Bancorp	27.72%	32.32%	2.50%

Institutional & Insider Ownership

3.2% of Kentucky First Federal Bancorp shares are held by institutional investors. Comparatively, 96.2% of Bancorp shares are held by institutional investors. 3.9% of Kentucky First Federal Bancorp shares are held by company insiders. Comparatively, 6.0% of Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kentucky First Federal Bancorp	$21.42 million	2.16	$1.91 million	$0.23	24.85
Bancorp	$672.07 million	3.03	$228.21 million	$5.32	9.39

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

This is a summary of current ratings and target prices for Kentucky First Federal Bancorp and Bancorp, 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
Bancorp	0	2	4	1	2.86

Bancorp has a consensus target price of $69.33, suggesting a potential upside of 38.81%. Given Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Bancorp is more favorable than Kentucky First Federal Bancorp.

Summary

Bancorp beats Kentucky First Federal Bancorp on 14 of the 15 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 Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.