Ocwen Financial (NYSE: OCN) and Bank Of Kentucky Financial (NASDAQ:BKYF) are both small-cap financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Volatility and Risk
Ocwen Financial has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Bank Of Kentucky Financial has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Ocwen Financial and Bank Of Kentucky Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank Of Kentucky Financial||0||0||0||0||N/A|
Ocwen Financial presently has a consensus price target of $3.33, suggesting a potential upside of 6.50%. Given Ocwen Financial’s higher probable upside, equities analysts plainly believe Ocwen Financial is more favorable than Bank Of Kentucky Financial.
This table compares Ocwen Financial and Bank Of Kentucky Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank Of Kentucky Financial||21.85%||8.12%||0.86%|
Institutional and Insider Ownership
45.9% of Ocwen Financial shares are owned by institutional investors. 2.4% of Ocwen Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Ocwen Financial and Bank Of Kentucky Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ocwen Financial||$1.39 billion||0.30||-$199.76 million||($0.75)||-4.17|
|Bank Of Kentucky Financial||N/A||N/A||N/A||$2.30||22.17|
Bank Of Kentucky Financial has lower revenue, but higher earnings than Ocwen Financial. Ocwen Financial is trading at a lower price-to-earnings ratio than Bank Of Kentucky Financial, indicating that it is currently the more affordable of the two stocks.
Ocwen Financial Company Profile
Ocwen Financial Corporation is a financial services holding company. The Company, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, and Corporate Items and Other. The Company’s Servicing segment consists of its residential servicing business. The Company’s Lending segment is focused on originating and purchasing conventional and government-insured residential forward and reverse mortgage loans. The Company’s Corporate Items and Other segment includes revenues and expenses of Automotive Capital Services (ACS) and its other business activities. Its servicing clients include some of the financial institutions in the United States, including the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the Government National Mortgage Association (Ginnie Mae) and non-Agency residential mortgage-backed securities (RMBS) trusts.
Bank Of Kentucky Financial Company Profile
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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