Analyzing IF Bancorp (NASDAQ:IROQ) and Kentucky First Federal Bancorp (NASDAQ:KFFB)

Insider and Institutional Ownership

44.1% of IF Bancorp shares are held by institutional investors. Comparatively, 3.2% of Kentucky First Federal Bancorp shares are held by institutional investors. 12.6% of IF Bancorp shares are held by company insiders. Comparatively, 3.9% of Kentucky First Federal Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IF Bancorp	6.18%	3.97%	0.34%
Kentucky First Federal Bancorp	-6.43%	-0.49%	-0.06%

Volatility and Risk

IF Bancorp has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Dividends

IF Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Kentucky First Federal Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 13.9%. IF Bancorp pays out 43.0% of its earnings in the form of a dividend. Kentucky First Federal Bancorp pays out -285.7% 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. Kentucky First Federal Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares IF Bancorp and Kentucky First Federal Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IF Bancorp	$23.61 million	3.42	$1.79 million	$0.93	25.90
Kentucky First Federal Bancorp	$8.01 million	2.90	-$1.72 million	($0.14)	-20.50

IF Bancorp has higher revenue and earnings than Kentucky First Federal Bancorp. Kentucky First Federal Bancorp is trading at a lower price-to-earnings ratio than IF Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

IF Bancorp beats Kentucky First Federal Bancorp on 11 of the 13 factors compared between the two stocks.

About IF Bancorp

IF Bancorp, Inc. operates as the savings and loan holding company for Iroquois Federal Savings and Loan Association that provides a range of banking and financial services to individual and corporate clients. The company offers various deposit accounts, including savings accounts, certificates of deposit, money market accounts, commercial and personal checking accounts, individual retirement accounts, and health savings accounts. It provides loans comprising one- to four-family residential mortgage loans; multi-family mortgage loans; commercial real estate loans, such as farm loans; home equity lines of credit; commercial business loans; and consumer loans primarily comprising automobile loans, as well as construction loans and land development loans. In addition, the company sells property and casualty insurance, as well as offers annuities; mutual funds; individual and group retirement plans; life, disability, and health insurance; individual securities; managed accounts; and other financial services. IF Bancorp, Inc. invests in securities; and provides ATM, online banking and bill pay, mobile banking, ACH origination, remote deposit capture, and telephone banking services. The company was founded in 1883 and is headquartered in Watseka, Illinois.

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.