Comparing Finward Bancorp (NASDAQ:FNWD) and Kearny Financial (NASDAQ:KRNY)

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

Institutional and Insider Ownership

26.6% of Finward Bancorp shares are held by institutional investors. Comparatively, 71.0% of Kearny Financial shares are held by institutional investors. 13.7% of Finward Bancorp shares are held by insiders. Comparatively, 8.2% of Kearny Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Finward 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
Finward Bancorp	$96.53 million	1.09	$8.38 million	$1.94	12.65
Kearny Financial	$296.48 million	1.37	$40.81 million	$0.29	21.79

Kearny Financial has higher revenue and earnings than Finward Bancorp. Finward 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.

Risk & Volatility

Finward Bancorp has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Kearny Financial has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	8.68%	6.36%	0.40%
Kearny Financial	5.84%	4.44%	0.47%

Dividends

Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Kearny Financial pays an annual dividend of $0.44 per share and has a dividend yield of 7.0%. Finward Bancorp pays out 24.7% of its earnings in the form of a dividend. Kearny Financial pays out 151.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	0	0	N/A
Kearny Financial	0	1	0	0	2.00

Kearny Financial has a consensus price target of $9.00, indicating a potential upside of 42.41%. Given Kearny Financial’s higher possible upside, analysts clearly believe Kearny Financial is more favorable than Finward Bancorp.

Summary

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

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

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 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, the company engages in investment activities. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.