Kentucky First Federal Bancorp (NASDAQ:KFFB) versus Fifth Third Bancorp (NASDAQ:FITB) Financial Contrast

Fifth Third Bancorp (NASDAQ:FITB) and Kentucky First Federal Bancorp (NASDAQ:KFFB) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Dividends

Fifth Third Bancorp pays an annual dividend of $1.68 per share and has a dividend yield of 3.2%. Kentucky First Federal Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 3.5%. Fifth Third Bancorp pays out 57.3% of its earnings in the form of a dividend. Kentucky First Federal Bancorp pays out 87.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fifth Third Bancorp has increased its dividend for 14 consecutive years.

Insider & Institutional Ownership

83.8% of Fifth Third Bancorp shares are held by institutional investors. Comparatively, 3.2% of Kentucky First Federal Bancorp shares are held by institutional investors. 0.5% of Fifth Third 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Fifth Third Bancorp and Kentucky First Federal Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth Third Bancorp	$10.49 billion	4.50	$2.52 billion	$2.93	17.76
Kentucky First Federal Bancorp	$21.42 million	2.18	$1.91 million	$0.23	25.13

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

Risk and Volatility

Fifth Third Bancorp has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Kentucky First Federal Bancorp has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fifth Third Bancorp and Kentucky First Federal Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth Third Bancorp	0	4	18	1	2.87
Kentucky First Federal Bancorp	0	1	0	0	2.00

Fifth Third Bancorp currently has a consensus price target of $61.20, indicating a potential upside of 17.59%. Given Fifth Third Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Fifth Third Bancorp is more favorable than Kentucky First Federal Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fifth Third Bancorp	15.89%	12.39%	1.20%
Kentucky First Federal Bancorp	8.91%	3.88%	0.51%

Summary

Fifth Third Bancorp beats Kentucky First Federal Bancorp on 15 of the 18 factors compared between the two stocks.

About Fifth Third Bancorp

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.

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.