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

Risk and Volatility

Brookline Bancorp has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Kearny Financial has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Earnings & Valuation

This table compares Brookline Bancorp and Kearny Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookline Bancorp $295.22 million 5.14 $50.51 million $0.80 23.63
Kearny Financial $150.44 million 9.53 $18.60 million N/A N/A

Brookline Bancorp has higher revenue and earnings than Kearny Financial.

Dividends

Brookline Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Kearny Financial pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. Brookline Bancorp pays out 50.0% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Brookline Bancorp 18.90% 7.99% 0.96%
Kearny Financial 9.92% 2.01% 0.42%

Institutional & Insider Ownership

74.9% of Brookline Bancorp shares are held by institutional investors. Comparatively, 51.2% of Kearny Financial shares are held by institutional investors. 2.5% of Brookline Bancorp shares are held by company insiders. Comparatively, 3.8% of Kearny Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Brookline Bancorp and Kearny Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookline Bancorp 0 2 0 0 2.00
Kearny Financial 1 0 0 0 1.00

Brookline Bancorp presently has a consensus target price of $16.25, suggesting a potential downside of 14.02%. Kearny Financial has a consensus target price of $13.50, suggesting a potential downside of 3.57%. Given Kearny Financial’s higher possible upside, analysts plainly believe Kearny Financial is more favorable than Brookline Bancorp.

Summary

Brookline Bancorp beats Kearny Financial on 9 of the 14 factors compared between the two stocks.

About Brookline Bancorp

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include non-interest-bearing demand checking accounts, NOW accounts, savings accounts, and money market accounts. The company's loan portfolio comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; loans and leases used to finance equipment used by small businesses; financing for construction and development projects; and home equity and other consumer loans. It also provides cash management, investment advisory, and online banking services, as well as invests in debt and equity securities. As of December 31, 2017, the Company operated 51 full-service banking offices in greater Boston, the north shore of Massachusetts, and Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts.

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 comprising one-to-four family mortgage loans; commercial mortgages, including loans secured by multi-family, mixed-use, and nonresidential properties; secured and unsecured business loans; consumer loans, such as home equity loans, home equity lines of credit, account loans, overdraft lines of credit, vehicle loans, personal loans, and loans secured by savings accounts and certificates of deposit; and construction loans to builders/developers and individual homeowners. In addition, it sells insurance products to its customers and the general public through a third party networking arrangement. As of August 16, 2017, the company operated 42 branches located in northern and central New Jersey, and Brooklyn and Staten Island, New York. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.

Receive News & Ratings for Brookline Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brookline Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.