First Bank (NASDAQ: FRBA) and WSFS Financial Corporation (NASDAQ:WSFS) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Earnings & Valuation
This table compares First Bank and WSFS Financial Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First Bank||$31.35 million||6.37||$9.61 million||$0.64||20.78|
|WSFS Financial Corporation||$307.38 million||4.98||$69.12 million||$2.20||22.16|
WSFS Financial Corporation has higher revenue and earnings than First Bank. First Bank is trading at a lower price-to-earnings ratio than WSFS Financial Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
First Bank has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, WSFS Financial Corporation has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
Insider & Institutional Ownership
43.3% of First Bank shares are owned by institutional investors. Comparatively, 78.4% of WSFS Financial Corporation shares are owned by institutional investors. 4.9% of WSFS Financial Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares First Bank and WSFS Financial Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WSFS Financial Corporation||19.96%||10.44%||1.08%|
This is a summary of recent recommendations and price targets for First Bank and WSFS Financial Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WSFS Financial Corporation||0||0||3||0||3.00|
First Bank presently has a consensus target price of $14.00, indicating a potential upside of 5.26%. WSFS Financial Corporation has a consensus target price of $51.33, indicating a potential upside of 5.30%. Given WSFS Financial Corporation’s higher possible upside, analysts clearly believe WSFS Financial Corporation is more favorable than First Bank.
First Bank pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. WSFS Financial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. First Bank pays out 12.5% of its earnings in the form of a dividend. WSFS Financial Corporation pays out 12.7% 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. First Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.
WSFS Financial Corporation beats First Bank on 12 of the 15 factors compared between the two stocks.
About First Bank
First Bank is a commercial bank. The Company provides a range of lending, deposit and other financial products and services. It operates through Community Banking segment, which is engaged in providing a range of commercial and retail and related banking services. It offers a range of lending products to meet the needs of its customers located within its market areas, including commercial and industrial loans, commercial real estate loans (including owner-occupied, investor, construction and development and multi-family loans), residential real estate loans, and consumer and other loans. It offers a range of deposit instruments, including non-interest bearing demand deposits (such as checking accounts), interest bearing demand accounts, money market accounts, savings accounts and certificates of deposit. It operates over 10 branches located in Cranbury, Denville, Ewing, Flemington, Hamilton, Lawrence, Somerset, Randolph and Williamstown, New Jersey, and Trevose, Pennsylvania.
About WSFS Financial Corporation
WSFS Financial Corporation is a savings and loan holding company. The Company’s subsidiary is Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), which is the bank and trust company. It operates in three segments: WSFS Bank, Cash Connect and Wealth Management. The WSFS Bank segment provides loans and other financial products to commercial and retail customers. Its Cash Connect segment provides automated teller machine (ATM) services through strategic partnerships with several of the network, manufacturers and service providers in the ATM industry. The Wealth Management segment provides a range of fiduciary, investment management, credit and deposit products to clients. Its banking business is commercial lending funded by customer-generated deposits. It also offers a range of consumer loan products, retail securities and insurance brokerage services. Its subsidiaries include WSFS Wealth Investments, 1832 Holdings, Inc., Monarch and West Capital Management.
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