Meridian Bancorp (NASDAQ: EBSB) and Anchor BanCorp Wisconsin Inc (DE) (NASDAQ:ABCW) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Meridian Bancorp and Anchor BanCorp Wisconsin Inc (DE)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meridian Bancorp $146.27 million 6.12 $40.80 million $0.80 21.94
Anchor BanCorp Wisconsin Inc (DE) N/A N/A N/A N/A N/A

Meridian Bancorp has higher revenue and earnings than Anchor BanCorp Wisconsin Inc (DE).

Profitability

This table compares Meridian Bancorp and Anchor BanCorp Wisconsin Inc (DE)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meridian Bancorp 22.50% 6.77% 0.92%
Anchor BanCorp Wisconsin Inc (DE) N/A N/A N/A

Dividends

Meridian Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. Anchor BanCorp Wisconsin Inc (DE) does not pay a dividend. Meridian Bancorp pays out 20.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

64.7% of Meridian Bancorp shares are held by institutional investors. 5.1% of Meridian Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Meridian Bancorp and Anchor BanCorp Wisconsin Inc (DE), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meridian Bancorp 0 2 1 0 2.33
Anchor BanCorp Wisconsin Inc (DE) 0 0 0 0 N/A

Meridian Bancorp currently has a consensus target price of $19.33, indicating a potential upside of 10.16%. Given Meridian Bancorp’s higher probable upside, analysts clearly believe Meridian Bancorp is more favorable than Anchor BanCorp Wisconsin Inc (DE).

Summary

Meridian Bancorp beats Anchor BanCorp Wisconsin Inc (DE) on 9 of the 10 factors compared between the two stocks.

About Meridian Bancorp

Meridian Bancorp Inc, formerly Meridian Interstate Bancorp, Inc., is a mid-tier stock holding company of East Boston Savings Bank (the Bank). The Bank is a state-chartered stock savings bank that operates from 24 full-service locations and two loan centers in the Boston metropolitan area. East Boston Savings Bank operates eight of its full-service locations and a loan center under the name Mt. Washington Bank, a division of East Boston Savings Bank. The Bank offers a variety of deposit and loan products to individuals and businesses located in its primary market, which consists of Suffolk, Middlesex and Essex Counties, Massachusetts. The Bank operates as a community-oriented financial institution offering financial services to consumers and businesses. As of December 31, 2011, Meridian Financial Services, Incorporated owned 59.4% interest of the Company.

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