Capitol Federal Financial (NASDAQ:CFFN) and Western New England Bancorp (NASDAQ:WNEB) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Earnings and Valuation
This table compares Capitol Federal Financial and Western New England Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capitol Federal Financial||$335.38 million||5.15||$84.13 million||N/A||N/A|
|Western New England Bancorp||$82.54 million||3.65||$12.32 million||$0.50||20.28|
This is a summary of current recommendations for Capitol Federal Financial and Western New England Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capitol Federal Financial||0||2||0||0||2.00|
|Western New England Bancorp||0||2||1||0||2.33|
Capitol Federal Financial currently has a consensus target price of $13.75, suggesting a potential upside of 12.34%. Western New England Bancorp has a consensus target price of $11.83, suggesting a potential upside of 16.70%. Given Western New England Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Western New England Bancorp is more favorable than Capitol Federal Financial.
Volatility and Risk
Capitol Federal Financial has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.
Institutional and Insider Ownership
74.4% of Capitol Federal Financial shares are owned by institutional investors. Comparatively, 55.5% of Western New England Bancorp shares are owned by institutional investors. 2.2% of Capitol Federal Financial shares are owned by company insiders. Comparatively, 5.4% of Western New England Bancorp shares are owned by company 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 Capitol Federal Financial and Western New England Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capitol Federal Financial||28.26%||6.68%||1.00%|
|Western New England Bancorp||14.08%||6.48%||0.76%|
Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 2.8%. Western New England Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Western New England Bancorp pays out 32.0% of its earnings in the form of a dividend.
Capitol Federal Financial beats Western New England Bancorp on 10 of the 15 factors compared between the two stocks.
About Capitol Federal Financial
Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products comprising savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposits. It also provides various loan products, such as one- to four-family residential real estate loans; construction-to-permanent loans; consumer loans comprising home equity loans and lines of credit, home improvement loans, auto loans, and loans secured by savings deposits; and commercial real estate loans consisting of various property types, including hotels, office and retail buildings, senior housing facilities, and multi-family dwellings located in Texas, Missouri, Kansas, Nebraska, Colorado, Arkansas, California, and Montana. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; and invests in various securities. It operates a network of 47 branches, which include 37 traditional branches and 10 in-store branches located in 9 counties throughout Kansas and 3 counties in Missouri. The company was founded in 1893 and is headquartered in Topeka, Kansas.
About Western New England Bancorp
Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides community banking products and services to individuals and businesses. The company accepts various deposit accounts, including time deposits, money market accounts, savings accounts, demand accounts, and interest bearing checking accounts. It also offers commercial and industrial loans comprising business installment loans, vehicle and equipment financing, lines of credit, and other commercial loans; commercial real estate loans to finance the purchase of apartment buildings, business properties, and multi-family investment properties; construction loans to the developers of commercial and residential properties; residential real estate loans and originations; home equity loans; and consumer loans. In addition, the company provides complementary commercial products and services consisting of commercial deposit accounts, cash management services, Internet banking, sweep accounts, ATM network, and night deposit services; and invests in government-sponsored enterprise debt securities and municipal bonds. It operates a network of 21 banking offices located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield, and Westfield, Massachusetts, Granby and Enfield, and Connecticut. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. Western New England Bancorp, Inc. was founded in 1853 and is headquartered in Westfield, Massachusetts.
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