Head to Head Contrast: Jeffersonville Bancorp (OTCMKTS:JFBC) vs. Magyar Bancorp (NASDAQ:MGYR)

Jeffersonville Bancorp (OTCMKTS:JFBC) and Magyar Bancorp (NASDAQ:MGYR) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

Jeffersonville Bancorp has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Magyar Bancorp has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Jeffersonville Bancorp and Magyar Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jeffersonville Bancorp	0	0	0	0	0.00
Magyar Bancorp	0	1	0	0	2.00

Dividends

Jeffersonville Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Magyar Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. Jeffersonville Bancorp pays out 25.8% of its earnings in the form of a dividend. Magyar Bancorp pays out 22.5% 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. Magyar Bancorp has raised its dividend for 3 consecutive years.

Profitability

This table compares Jeffersonville Bancorp and Magyar Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jeffersonville Bancorp	36.66%	12.98%	1.96%
Magyar Bancorp	18.32%	9.28%	1.09%

Valuation and Earnings

This table compares Jeffersonville Bancorp and Magyar Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jeffersonville Bancorp	$34.24 million	3.45	$12.55 million	$3.10	9.00
Magyar Bancorp	$58.42 million	1.92	$9.76 million	$1.78	9.76

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

Institutional and Insider Ownership

46.3% of Magyar Bancorp shares are held by institutional investors. 8.4% of Jeffersonville Bancorp shares are held by insiders. Comparatively, 11.1% of Magyar Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Magyar Bancorp beats Jeffersonville Bancorp on 8 of the 15 factors compared between the two stocks.

About Jeffersonville Bancorp

Jeffersonville Bancorp operates as the bank holding company for Jeff Bank that provides community banking services to individuals, small businesses, and local municipal governments primarily in Sullivan County, New York. The company offers various deposit products, such as checking, money market, savings, and NOW, as well as demand and time deposits. It also offers commercial mortgage, farmland, construction, real estate, agricultural, residential mortgage, home equity, consumer, installment, and other consumer loans. The company was founded in 1913 and is based in Jeffersonville, New York.

About Magyar Bancorp

Magyar Bancorp, Inc. operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The company also provides residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and construction loans, as well as small business administration loans. In addition, it offers non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and buys, sells, and holds investment securities. The company has branch offices located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. Magyar Bancorp, Inc. was founded in 1922 and is headquartered in New Brunswick, New Jersey.