Kearny Financial (NASDAQ:KRNY) & Southern Banc (NASDAQ:SRNN) Critical Contrast

Southern Banc (OTCMKTS:SRNN) 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 earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Southern Banc and Kearny Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southern Banc 0 0 0 0 N/A
Kearny Financial 0 0 1 0 3.00

Kearny Financial has a consensus target price of $10.00, indicating a potential upside of 24.30%. Given Kearny Financial’s higher probable upside, analysts clearly believe Kearny Financial is more favorable than Southern Banc.

Profitability

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

Net Margins Return on Equity Return on Assets
Southern Banc 6.39% 3.12% 0.38%
Kearny Financial 15.82% 3.60% 0.60%

Insider and Institutional Ownership

64.1% of Kearny Financial shares are owned by institutional investors. 22.0% of Southern Banc shares are owned by company insiders. Comparatively, 4.6% of Kearny Financial shares are owned by company 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.

Earnings and Valuation

This table compares Southern Banc and Kearny Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southern Banc $5.65 million 1.02 $460,000.00 N/A N/A
Kearny Financial $250.89 million 2.68 $42.14 million $0.47 17.12

Kearny Financial has higher revenue and earnings than Southern Banc.

Volatility & Risk

Southern Banc has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Kearny Financial has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

Kearny Financial beats Southern Banc on 11 of the 12 factors compared between the two stocks.

About Southern Banc

The Southern Banc Company, Inc. operates as the holding company for The Southern Bank Company that provides various banking products and services in Alabama. Its personal banking products include checking accounts, home mortgage loans, home equity loans, auto loans, and personal loans. The company's business banking products comprise business checking accounts, cash flow management, real estate lending, and equipment financing. It also offers commercial accounts, accounts receivable management, factoring services, and online banking and ATM services. The company operates through four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, as well as through one commercial finance office located in Birmingham. The Southern Banc Company, Inc. was founded in 1936 and is based in Gadsden, Alabama.

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. 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 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, the company engages in investment activities. As of August 15, 2018, it operated a total of 54 retail 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.

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