Western New England Bancorp (NASDAQ: WFD) and 1st Constitution Bancorp (NJ) (NASDAQ:FCCY) are both financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Insider and Institutional Ownership

54.6% of Western New England Bancorp shares are owned by institutional investors. Comparatively, 27.1% of 1st Constitution Bancorp (NJ) shares are owned by institutional investors. 6.1% of Western New England Bancorp shares are owned by company insiders. Comparatively, 20.0% of 1st Constitution Bancorp (NJ) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Western New England Bancorp and 1st Constitution Bancorp (NJ)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Western New England Bancorp N/A N/A N/A $0.30 26.33
1st Constitution Bancorp (NJ) $43.99 million 3.29 $8.39 million $1.04 17.26

1st Constitution Bancorp (NJ) has higher revenue and earnings than Western New England Bancorp. 1st Constitution Bancorp (NJ) is trading at a lower price-to-earnings ratio than Western New England Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Western New England Bancorp and 1st Constitution Bancorp (NJ)’s 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%
1st Constitution Bancorp (NJ) 17.32% 8.13% 0.83%

Dividends

Western New England Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. 1st Constitution Bancorp (NJ) pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. Western New England Bancorp pays out 40.0% of its earnings in the form of a dividend. 1st Constitution Bancorp (NJ) pays out 19.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Western New England Bancorp has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, 1st Constitution Bancorp (NJ) has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Western New England Bancorp and 1st Constitution Bancorp (NJ), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western New England Bancorp 0 0 0 0 N/A
1st Constitution Bancorp (NJ) 0 1 0 0 2.00

1st Constitution Bancorp (NJ) has a consensus price target of $18.00, indicating a potential upside of 0.28%. Given 1st Constitution Bancorp (NJ)’s higher possible upside, analysts clearly believe 1st Constitution Bancorp (NJ) is more favorable than Western New England Bancorp.

Summary

1st Constitution Bancorp (NJ) beats Western New England Bancorp on 7 of the 11 factors compared between the two stocks.

Western New England Bancorp Company Profile

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.

1st Constitution Bancorp (NJ) Company Profile

1st Constitution Bancorp is the bank holding company for 1st Constitution Bank (the Bank). The Bank is a commercial bank, which is engaged in the business of commercial and retail banking. The Company operates through the Community Banking segment. The Community Banking segment consists of construction, commercial, retail and mortgage banking operations. As a community bank, the Bank offers a range of services (including demand, savings and time deposits and commercial and consumer/installment loans) to individuals, small businesses and not-for-profit organizations principally in the Fort Lee area of Bergen County and in Middlesex, Mercer, Somerset and Monmouth Counties of New Jersey. The Bank’s Mortgage Warehouse Funding Group offers revolving lines of credit that are available to licensed mortgage banking companies (the Warehouse Line of Credit). The Bank’s investment activities are classified as available for sale and held to maturity securities.

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