Head-To-Head Analysis: Western New England Bancorp (NASDAQ:WNEB) versus FFBW (NASDAQ:FFBW)

FFBW (NASDAQ:FFBW) and Western New England Bancorp (NASDAQ:WNEB) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Earnings & Valuation

This table compares FFBW 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
FFBW $11.31 million 6.51 $1.06 million N/A N/A
Western New England Bancorp $88.22 million 2.95 $16.41 million $0.56 17.52

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

Risk & Volatility

FFBW has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Dividends

Western New England Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. FFBW does not pay a dividend. Western New England Bancorp pays out 35.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for FFBW and Western New England Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FFBW 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 $10.50, suggesting a potential upside of 7.03%. Given Western New England Bancorp’s higher probable upside, analysts plainly believe Western New England Bancorp is more favorable than FFBW.

Insider & Institutional Ownership

4.0% of FFBW shares are held by institutional investors. Comparatively, 52.3% of Western New England Bancorp shares are held by institutional investors. 2.9% of FFBW shares are held by company insiders. Comparatively, 5.2% of Western New England Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
FFBW 10.46% 2.04% 0.48%
Western New England Bancorp 15.15% 5.93% 0.64%

Summary

Western New England Bancorp beats FFBW on 10 of the 14 factors compared between the two stocks.

About FFBW

FFBW, Inc. is the holding company of First Federal Bank of Wisconsin (the Bank). First Federal Bank of Wisconsin is a federally chartered mutual savings bank. The Bank’s business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one-to four-family residential owner-occupied real estate loans, one-to four-family residential investor-owned real estate loans, multifamily loans and commercial real estate loans, and, to a lesser extent, commercial and industrial loans, commercial development loans and consumer loans. The Bank invests in various types of liquid assets, including the United States Treasury obligations, securities of various government-sponsored enterprises and municipal governments, deposits at the Federal Home Loan Bank of Chicago. At March 31, 2017, the Bank had total deposits of 180.5 million. At March 31, 2017, the Bank had net loans of 165,697 thousand.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including checking, savings, business and municipal savings, money market and business sweep, and individual retirement accounts; time deposits; term certificates of deposit; and interest on lawyers trust accounts. It also offers commercial real estate loans secured by one-to-four and multi-family apartment buildings, office, industrial, or mixed-use facilities, or other commercial properties; commercial construction loans; commercial and industrial loans, such as revolving lines of credit, working capital loans, equipment financing and term loans; residential real estate loans secured by one-to-four family residential properties; home equity loans; and consumer loans. In addition, the company provides automated teller machines (ATM), telephone and online banking, remote deposit capture, cash management services, overdraft facilities, night deposit services, and safe deposit facilities. It operates a network of 22 banking offices, 24 free-standing ATMs, and 24 seasonal or temporary ATMS located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Granby and Enfield, 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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