Western New England Bancorp (NASDAQ:WNEB) vs. WCF Bancorp (OTCMKTS:WCFB) Head to Head Comparison

WCF Bancorp (OTCMKTS:WCFB) and Western New England Bancorp (NASDAQ:WNEB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares WCF Bancorp and Western New England Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WCF Bancorp N/A N/A N/A
Western New England Bancorp 11.68% 4.67% 0.48%

Volatility and Risk

WCF Bancorp has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Institutional and Insider Ownership

52.8% of Western New England Bancorp shares are owned by institutional investors. 0.8% of WCF Bancorp shares are owned by company insiders. Comparatively, 5.6% of Western New England Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for WCF Bancorp and Western New England Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WCF Bancorp 0 0 0 0 N/A
Western New England Bancorp 0 1 2 0 2.67

Western New England Bancorp has a consensus target price of $7.75, suggesting a potential downside of 6.29%. Given Western New England Bancorp’s higher possible upside, analysts clearly believe Western New England Bancorp is more favorable than WCF Bancorp.

Valuation and Earnings

This table compares WCF Bancorp and Western New England Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WCF Bancorp $5.07 million 4.06 $230,000.00 N/A N/A
Western New England Bancorp $91.82 million 2.26 $13.35 million $0.51 16.22

Western New England Bancorp has higher revenue and earnings than WCF Bancorp.

Dividends

WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.4%. Western New England Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.4%. Western New England Bancorp pays out 39.2% of its earnings in the form of a dividend. Western New England Bancorp has increased its dividend for 1 consecutive years. Western New England Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Western New England Bancorp beats WCF Bancorp on 11 of the 14 factors compared between the two stocks.

About WCF Bancorp

WCF Bancorp, Inc. operates as the bank holding company for WCF Financial Bank that provides commercial banking products and services to individuals and businesses. The company accepts deposit accounts, such as statement savings, money market, and NOW accounts, as well as certificates of deposit. Its loan products include one-to-four family residential real estate loans; non-owner occupied one-to-four family residential real estate loans; commercial real estate loans; and consumer loans comprising new and used automobile loans, home improvement and home equity loans, recreational vehicle loans, and loans secured by certificates of deposit. The company also invests in investment securities. WCF Bancorp, Inc. conducts its operations from two offices located in Webster City, Iowa and Independence, Iowa. The company was founded in 1934 and is based in Webster City, Iowa.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including checking, business and municipal savings, money market and business sweep, individual retirement, and other savings accounts; time deposits; term certificates of deposit; and interest on lawyers trust accounts. It also offers residential and commercial real estate, commercial construction, working capital, equipment financing and term, home equity, and consumer loans; commercial and industrial loans, such as revolving lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. As of December 31, 2020, it operated a network of 25 banking offices, 25 free-standing ATMs, and 23 seasonal or temporary ATMS located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Huntington, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Bloomfield, Enfield, Granby, and West Hartford, 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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