PCSB Financial (PCSB) vs. Wellesley Bancorp (WEBK) Critical Contrast

PCSB Financial (NASDAQ:PCSB) and Wellesley Bancorp (NASDAQ:WEBK) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares PCSB Financial and Wellesley Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PCSB Financial $50.48 million 6.84 $6.60 million N/A N/A
Wellesley Bancorp $36.22 million 2.27 $5.99 million N/A N/A

PCSB Financial has higher revenue and earnings than Wellesley Bancorp.

Insider and Institutional Ownership

52.9% of PCSB Financial shares are held by institutional investors. Comparatively, 10.8% of Wellesley Bancorp shares are held by institutional investors. 1.8% of PCSB Financial shares are held by company insiders. Comparatively, 16.7% of Wellesley Bancorp shares are held 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.

Volatility and Risk

PCSB Financial has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Wellesley Bancorp has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Dividends

PCSB Financial pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Wellesley Bancorp pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. Wellesley Bancorp has increased its dividend for 3 consecutive years. Wellesley Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for PCSB Financial and Wellesley Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PCSB Financial 0 1 0 0 2.00
Wellesley Bancorp 0 0 0 0 N/A

Profitability

This table compares PCSB Financial and Wellesley Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PCSB Financial 17.75% 3.27% 0.63%
Wellesley Bancorp 16.54% 9.60% 0.71%

About PCSB Financial

PCSB Financial Corporation operates as the bank holding company for PCSB Bank that provides financial services to individuals and businesses in Putnam, Southern Dutchess, Rockland, and Westchester Counties in New York. Its deposits products include non-interest bearing demand, NOW, money market, escrow, and savings accounts, as well as time deposits and certificates of deposit. The company also offers commercial real estate, multi-family residential real estate, commercial business, construction, residential mortgage, and consumer loans, as well as home equity lines of credit. It provides its services from executive offices/headquarters and 15 banking offices. The company was founded in 1871 and is headquartered in Yorktown Heights, New York.

About Wellesley Bancorp

Wellesley Bancorp, Inc. operates as the bank holding company for Wellesley Bank that provides various financial services to individuals, non-profit organizations, small businesses, and other entities in eastern Massachusetts. Its deposit products include noninterest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising negotiable order of withdrawal and money market accounts; savings accounts; and certificates of deposit. The company also offers residential mortgage loans, commercial real estate loans, and construction loans, as well as home equity lines of credit; other consumer loans that consist of fixed-rate second mortgage loans, automobile loans, loans secured by passbook or certificate accounts, and overdraft loans; and commercial business loans, such as term loans, revolving lines of credit, and equipment loans. In addition, it provides investment advisory services and remote capture products; and engages in buying, selling, and holding securities. As of December 31, 2017, Wellesley Bancorp, Inc. operated through executive offices and five full service branch offices located in Wellesley, Newton, and Boston; limited- hour branch service office in Needham, Massachusetts; and one full-service branch office in Newton Centre and Boston, as well as wealth management offices located in Wellesley. The company was founded in 1911 and is headquartered in Wellesley, Massachusetts.

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