Head to Head Survey: Kearny Financial (NASDAQ:KRNY) vs. Mid-Southern Bancorp (NASDAQ:MSVB)

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

Volatility & Risk

Kearny Financial has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Mid-Southern Bancorp has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Insider and Institutional Ownership

71.0% of Kearny Financial shares are owned by institutional investors. Comparatively, 10.1% of Mid-Southern Bancorp shares are owned by institutional investors. 8.6% of Kearny Financial shares are owned by company insiders. Comparatively, 10.2% of Mid-Southern Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kearny Financial	$326.88 million	1.61	-$86.67 million	($1.45)	-5.61
Mid-Southern Bancorp	$11.71 million	3.59	$1.46 million	$0.40	36.54

Mid-Southern Bancorp has lower revenue, but higher earnings than Kearny Financial. Kearny Financial is trading at a lower price-to-earnings ratio than Mid-Southern Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Kearny Financial pays an annual dividend of $0.44 per share and has a dividend yield of 5.4%. Mid-Southern Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Kearny Financial pays out -30.3% of its earnings in the form of a dividend. Mid-Southern Bancorp pays out 60.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kearny Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kearny Financial	-27.43%	3.05%	0.31%
Mid-Southern Bancorp	9.43%	3.08%	0.45%

Analyst Ratings

This is a summary of current ratings and price targets for Kearny Financial and Mid-Southern Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kearny Financial	0	1	0	0	2.00
Mid-Southern Bancorp	0	0	0	0	0.00

Kearny Financial presently has a consensus target price of $7.00, suggesting a potential downside of 14.00%. Given Kearny Financial’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Kearny Financial is more favorable than Mid-Southern Bancorp.

Summary

Mid-Southern Bancorp beats Kearny Financial on 8 of the 15 factors compared between the two stocks.

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.

About Mid-Southern Bancorp

Mid-Southern Bancorp, Inc. operates as the holding company for Mid-Southern Savings Bank, FSB that provides various banking products and services to individuals and business customers. It accepts various deposit products, including checking, savings, money market, and demand accounts, as well as certificates of deposit and term deposits. The company also offers loans secured by first mortgages on one- to four-family residences, including home equity loans and lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences; commercial and multifamily real estate loans; land and lot loans; commercial business loans; consumer loans, including new and used manufactured homes, automobiles and truck, boats, and motorcycles and recreational vehicle loans; loans secured by savings deposits and other personal loans; and unsecured consumer loans. In addition, it holds and manages an investment securities portfolio. The company provides its products and services through its main office in Salem; and through its branch offices located in Mitchell and Orleans, Indiana, as well as through loan production offices located in New Albany, Indiana and Louisville, Kentucky. The company was founded in 1886 and is headquartered in Salem, Indiana.