Reviewing WCF Bancorp (OTCMKTS:WCFB) and Byline Bancorp (NYSE:BY)

Byline Bancorp (NYSE:BY) and WCF Bancorp (OTCMKTS:WCFB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Profitability

This table compares Byline Bancorp and WCF Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	20.01%	11.50%	1.36%
WCF Bancorp	N/A	N/A	N/A

Risk and Volatility

Byline Bancorp has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, WCF Bancorp has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Byline Bancorp and WCF Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	2	3	0	2.60
WCF Bancorp	0	0	0	0	0.00

Byline Bancorp currently has a consensus price target of $33.25, indicating a potential upside of 22.40%. Given Byline Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Byline Bancorp is more favorable than WCF Bancorp.

Insider and Institutional Ownership

67.7% of Byline Bancorp shares are held by institutional investors. 28.8% of Byline Bancorp shares are held by company insiders. Comparatively, 0.8% of WCF Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Byline Bancorp and WCF Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byline Bancorp	$624.78 million	1.99	$120.76 million	$2.81	9.67
WCF Bancorp	$11.85 million	1.15	-$40,000.00	N/A	N/A

Byline Bancorp has higher revenue and earnings than WCF Bancorp.

Dividends

Byline Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Byline Bancorp pays out 14.2% of its earnings in the form of a dividend. Byline Bancorp has raised its dividend for 1 consecutive years.

Summary

Byline Bancorp beats WCF Bancorp on 13 of the 15 factors compared between the two stocks.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

About WCF Bancorp

WCF Bancorp, Inc. operates as the bank holding company for WCF Financial Bank that provides commercial banking products and services to individuals and businesses. The company offers checking and saving accounts; certificates of deposit; personal, mortgage, business, agricultural, and commercial real estate loans; debit and credit cards; and other products. It operates through full-service offices in Webster City, Independence, and Tama, Iowa. The company was founded in 1934 and is based in Webster City, Iowa.