PennyMac Financial Services (NYSE: PFSI) and Bank Of Kentucky Financial Corp (NASDAQ:BKYF) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

84.9% of PennyMac Financial Services shares are held by institutional investors. 45.6% of PennyMac Financial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares PennyMac Financial Services and Bank Of Kentucky Financial Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PennyMac Financial Services $1.24 billion 0.32 $69.82 million $2.97 5.76
Bank Of Kentucky Financial Corp N/A N/A N/A N/A N/A

PennyMac Financial Services has higher revenue and earnings than Bank Of Kentucky Financial Corp.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PennyMac Financial Services and Bank Of Kentucky Financial Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PennyMac Financial Services 1 1 6 0 2.63
Bank Of Kentucky Financial Corp 0 0 0 0 N/A

PennyMac Financial Services presently has a consensus price target of $20.17, suggesting a potential upside of 17.93%. Given PennyMac Financial Services’ higher probable upside, research analysts plainly believe PennyMac Financial Services is more favorable than Bank Of Kentucky Financial Corp.

Profitability

This table compares PennyMac Financial Services and Bank Of Kentucky Financial Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PennyMac Financial Services 6.87% 4.79% 1.21%
Bank Of Kentucky Financial Corp 21.85% 8.12% 0.86%

Summary

PennyMac Financial Services beats Bank Of Kentucky Financial Corp on 6 of the 8 factors compared between the two stocks.

About PennyMac Financial Services

PennyMac Financial Services, Inc. (PFSI) is a financial services company. The Company is focused on the production and servicing of the United States residential mortgage loans and the management of investments related to the United States mortgage market. The Company operates through three segments: loan production, loan servicing and investment management. PFSI’s mortgage banking subsidiary, PennyMac Loan Services, LLC (PLS), is a non-bank producer and servicer of mortgage loans in the United States. As of December 31, 2016, PLS serviced loans in all 50 states, the District of Columbia, Guam and the United States Virgin Islands, and originated loans in 49 states and the District of Columbia. PFSI’s investment management subsidiary, PNMAC Capital Management, LLC (PCM), is an investment advisor. PLS is a seller and servicer for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

About Bank Of Kentucky Financial Corp

The Bank of Kentucky Financial Corporation is a bank holding company. The Company, through its subsidiary The Bank of Kentucky, Inc. (the Bank), is engaged in the banking business. The Bank provides financial services and other financial solutions through 32 offices located in northern Kentucky. The principal products produced and services rendered by the Bank include commercial banking, consumer banking and trust services. The Bank provides a range of commercial banking services to corporations and other business clients that include loans and deposit services, including checking, lockbox services and other treasury management services. The Bank provides banking services to consumers, including checking, savings and money market accounts, as well as certificates of deposits and individual retirement accounts. It also offers specialized services in the areas of fiduciary services and wealth management.

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