Analyzing Codorus Valley Bancorp (NASDAQ:CVLY) and Kearny Financial (KRNY)

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

Analyst Ratings

This is a summary of current recommendations and price targets for Kearny Financial and Codorus Valley Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kearny Financial 1 0 0 0 1.00
Codorus Valley Bancorp 0 0 0 0 N/A

Kearny Financial currently has a consensus target price of $13.50, indicating a potential downside of 2.32%. Given Kearny Financial’s higher probable upside, research analysts clearly believe Kearny Financial is more favorable than Codorus Valley Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Kearny Financial 10.61% 2.57% 0.52%
Codorus Valley Bancorp 17.13% 10.71% 1.03%

Earnings and Valuation

This table compares Kearny Financial and Codorus Valley Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kearny Financial $184.69 million 7.35 $19.59 million N/A N/A
Codorus Valley Bancorp $81.94 million 3.37 $12.00 million N/A N/A

Kearny Financial has higher revenue and earnings than Codorus Valley Bancorp.

Volatility & Risk

Kearny Financial has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Codorus Valley Bancorp has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Dividends

Kearny Financial pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. Codorus Valley Bancorp pays an annual dividend of $0.62 per share and has a dividend yield of 2.0%. Codorus Valley Bancorp has increased its dividend for 6 consecutive years. Codorus Valley Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

63.8% of Kearny Financial shares are owned by institutional investors. Comparatively, 53.2% of Codorus Valley Bancorp shares are owned by institutional investors. 3.6% of Kearny Financial shares are owned by insiders. Comparatively, 3.9% of Codorus Valley Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Codorus Valley Bancorp beats Kearny Financial on 7 of the 13 factors compared between the two stocks.

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.

About Codorus Valley Bancorp

Codorus Valley Bancorp, Inc. operates as the bank holding company for the PeoplesBank that provides various business and consumer banking services. The company accepts demand, money market, time, and savings deposits. It also offers commercial real estate loans; industrial loans; construction loans; commercial loans, such as builder and developer, commercial and residential real estate investor, hotel/motel, wholesale and retail, agriculture, manufacturing, and other loans; and consumer loans, including residential mortgage, home equity, and other loans. In addition, it provides personal and mortgage banking, wealth management, and real estate settlement services; and sells non-deposit investment products. As of December 31, 2017, the company operated 26 full service financial centers located in York, Cumberland, and Lancaster counties in Pennsylvania, as well as Baltimore, Harford, and Carroll counties in Maryland. Codorus Valley Bancorp, Inc. was founded in 1864 and is headquartered in York, Pennsylvania.

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