Ponce Financial Group (NASDAQ:PDLB) and Community West Bancshares (NASDAQ:CWBC) Head-To-Head Survey

Ponce Financial Group (NASDAQ:PDLB) and Community West Bancshares (NASDAQ:CWBC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ponce Financial Group and Community West Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ponce Financial Group	0	2	0	0	2.00
Community West Bancshares	1	2	2	0	2.20

Community West Bancshares has a consensus price target of $21.67, indicating a potential upside of 4.67%. Given Community West Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Community West Bancshares is more favorable than Ponce Financial Group.

Valuation & Earnings

This table compares Ponce Financial Group and Community West Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ponce Financial Group	$169.85 million	2.01	$10.97 million	$0.72	19.75
Community West Bancshares	$46.27 million	8.56	$7.67 million	$1.78	11.63

Ponce Financial Group has higher revenue and earnings than Community West Bancshares. Community West Bancshares is trading at a lower price-to-earnings ratio than Ponce Financial Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ponce Financial Group has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Community West Bancshares has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

64.4% of Ponce Financial Group shares are held by institutional investors. Comparatively, 33.8% of Community West Bancshares shares are held by institutional investors. 7.2% of Ponce Financial Group shares are held by insiders. Comparatively, 10.6% of Community West Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Ponce Financial Group and Community West Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ponce Financial Group	9.59%	6.09%	0.57%
Community West Bancshares	17.49%	9.26%	0.97%

Summary

Community West Bancshares beats Ponce Financial Group on 10 of the 14 factors compared between the two stocks.

About Ponce Financial Group

Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.

About Community West Bancshares

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposits; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.