Critical Analysis: Western New England Bancorp (WFD) versus The Competition
Western New England Bancorp (NASDAQ: WFD) is one of 206 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its rivals? We will compare Western New England Bancorp to similar businesses based on the strength of its risk, profitability, earnings, dividends, institutional ownership, valuation and analyst recommendations.
Western New England Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. Western New England Bancorp pays out 40.0% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.7% of their earnings in the form of a dividend. Western New England Bancorp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Volatility and Risk
Western New England Bancorp has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Western New England Bancorp’s rivals have a beta of 0.73, meaning that their average share price is 27% less volatile than the S&P 500.
Valuation & Earnings
This table compares Western New England Bancorp and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Western New England Bancorp||N/A||N/A||26.33|
|Western New England Bancorp Competitors||N/A||N/A||24.25|
Western New England Bancorp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares Western New England Bancorp and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western New England Bancorp||22.33%||6.06%||0.72%|
|Western New England Bancorp Competitors||19.73%||8.28%||0.88%|
This is a breakdown of current ratings for Western New England Bancorp and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western New England Bancorp||0||0||0||0||N/A|
|Western New England Bancorp Competitors||841||3933||2848||114||2.29|
As a group, “Commercial Banks” companies have a potential upside of 4.42%. Given Western New England Bancorp’s rivals higher possible upside, analysts clearly believe Western New England Bancorp has less favorable growth aspects than its rivals.
Insider and Institutional Ownership
54.6% of Western New England Bancorp shares are held by institutional investors. Comparatively, 46.7% of shares of all “Commercial Banks” companies are held by institutional investors. 6.1% of Western New England Bancorp shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Western New England Bancorp rivals beat Western New England Bancorp on 7 of the 9 factors compared.
About Western New England Bancorp
Western New England Bancorp, Inc., formerly Westfield Financial, Inc., is a Massachusetts-chartered stock holding company. The Company serves as a holding company for Westfield Bank (the Bank). It is a provider of banking products and services to business organizations and individuals, including products such as residential and commercial loans, consumer loans and a variety of deposit products. It focuses on residential real estate lending, as well as servicing commercial customers, including commercial and industrial lending and commercial deposit relationships. In addition, it provides online banking services. It operates through over 21 banking offices located in Agawam, Chicopee, East Longmeadow, Feeding Hills, Holyoke, Ludlow, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts, and Granby and Enfield, Connecticut. It also has over 10 automated teller machine (ATM) locations in Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts.
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