Berkshire Hills Bancorp (BHLB) and WVS Financial (WVFC) Head to Head Analysis

Berkshire Hills Bancorp (NYSE:BHLB) and WVS Financial (NASDAQ:WVFC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Profitability

This table compares Berkshire Hills Bancorp and WVS Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hills Bancorp 15.64% 8.33% 1.04%
WVS Financial 22.02% 6.92% 0.67%

Dividends

Berkshire Hills Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.2%. WVS Financial pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Berkshire Hills Bancorp pays out 38.4% of its earnings in the form of a dividend. Berkshire Hills Bancorp has increased its dividend for 4 consecutive years and WVS Financial has increased its dividend for 2 consecutive years. Berkshire Hills Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Berkshire Hills Bancorp has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, WVS Financial has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Valuation and Earnings

This table compares Berkshire Hills Bancorp and WVS Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berkshire Hills Bancorp $485.95 million 2.60 $55.24 million $2.29 12.17
WVS Financial $10.14 million 2.89 $2.12 million N/A N/A

Berkshire Hills Bancorp has higher revenue and earnings than WVS Financial.

Insider & Institutional Ownership

74.7% of Berkshire Hills Bancorp shares are owned by institutional investors. Comparatively, 21.4% of WVS Financial shares are owned by institutional investors. 1.6% of Berkshire Hills Bancorp shares are owned by insiders. Comparatively, 17.4% of WVS Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Berkshire Hills Bancorp and WVS Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hills Bancorp 1 3 1 0 2.00
WVS Financial 0 0 0 0 N/A

Berkshire Hills Bancorp currently has a consensus target price of $39.33, suggesting a potential upside of 41.18%. Given Berkshire Hills Bancorp’s higher possible upside, equities analysts clearly believe Berkshire Hills Bancorp is more favorable than WVS Financial.

Summary

Berkshire Hills Bancorp beats WVS Financial on 10 of the 14 factors compared between the two stocks.

Berkshire Hills Bancorp Company Profile

Berkshire Hills Bancorp, Inc. operates as a bank holding company for Berkshire Bank that provides various banking products and services. It offers various deposit accounts, including demand deposit, NOW, regular savings, money market savings, time certificates of deposit, and retirement deposit accounts; and loans, such as commercial real estate, commercial and industrial, consumer, and residential mortgage loans. The company also provides wealth management services comprising investment management, trust administration, and estate planning; and investment products, financial planning, and brokerage services. In addition, it provides retail and commercial electronic banking, commercial cash management, online banking, and mobile banking services; interest rate swaps; and debit cards and other electronic fee producing payment services to transaction account customers. Further, the company, through its subsidiary, Berkshire Insurance Group, Inc., offers personal and commercial property, and casualty insurance; employee benefits insurance; and life, health, and financial services insurance products. It serves retail, commercial, not- profit, and municipal deposit customers. As of December 31, 2017, the company operated 113 full-service branches in Massachusetts, New York, Connecticut, Vermont, Central New Jersey, and Eastern Pennsylvania. Berkshire Hills Bancorp, Inc. was founded in 1846 and is headquartered in Boston, Massachusetts.

WVS Financial Company Profile

WVS Financial Corp. operates as the bank holding company for West View Savings Bank that provides various banking products and services to residents and businesses. The company offers deposit products, including regular savings accounts, demand accounts, negotiable order of withdrawal accounts, money market deposit accounts, and certificates of deposit, as well as individual retirement account certificates. It also provides single-family and multi-family residential real estate loans; commercial real estate loans; construction loans; land acquisition and development loans; commercial loans comprising loans secured by accounts receivable, marketable investment securities, business inventory and equipment, and related collaterals; and consumer loans, such as home equity loans, home equity lines of credit, loans secured by deposit accounts, and personal and education loans. The company operates six offices in the North Hills suburbs of Pittsburgh, Pennsylvania. WVS Financial Corp. was founded in 1993 and is based in Pittsburgh, Pennsylvania.

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