First Resource Bancorp (OTCMKTS:FRSB) versus Webster Financial (NYSE:WBS) Critical Survey

First Resource Bancorp (OTCMKTS:FRSB) and Webster Financial (NYSE:WBS) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Dividends

First Resource Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Webster Financial pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. First Resource Bancorp pays out 2.7% of its earnings in the form of a dividend. Webster Financial pays out 26.2% 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.

Analyst Recommendations

This is a summary of current ratings for First Resource Bancorp and Webster Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Resource Bancorp	0	0	0	0	0.00
Webster Financial	1	11	4	0	2.19

Webster Financial has a consensus target price of $73.96, suggesting a potential upside of 2.60%. Given Webster Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Webster Financial is more favorable than First Resource Bancorp.

Insider and Institutional Ownership

85.6% of Webster Financial shares are held by institutional investors. 0.5% of Webster Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares First Resource Bancorp and Webster Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Resource Bancorp	19.11%	N/A	N/A
Webster Financial	22.95%	11.31%	1.24%

Risk and Volatility

First Resource Bancorp has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, Webster Financial has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares First Resource Bancorp and Webster Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Resource Bancorp	$44.33 million	1.53	$8.16 million	$2.98	7.55
Webster Financial	$2.92 billion	4.00	$1.00 billion	$6.11	11.80

Webster Financial has higher revenue and earnings than First Resource Bancorp. First Resource Bancorp is trading at a lower price-to-earnings ratio than Webster Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Webster Financial beats First Resource Bancorp on 15 of the 16 factors compared between the two stocks.

About First Resource Bancorp

First Resource Bancorp, Inc. operates as the bank holding for First Resource Bank that provides personal and business banking products and services to businesses and families primarily in the southeastern area of Pennsylvania. The company's offers savings, checking, and money market accounts, as well as certificate deposit account registry services, insured cash sweeps, certificates of deposit, and IRAs. Its loan products include commercial mortgages, construction loans, working capital credit lines, small business administration loans, commercial term loans, home equity lines of credit, fixed payment home equity loans, residential construction loans, land loans, overdraft protection, vehicle loans, unsecured installment loans, certificate of deposit secured installment loans, and swing loans. The company also provides personal financial statements; credit and debit cards; digital banking services; and cash management, positive pay, ACH origination, sweep/transfer of funds, ATM, over the counter checks, bill payment, wire transfer, signature guarantee/notary, safe deposit box, drive-up banking, night depository, foreign currency exchange, cashier's check, e-statements, and stop payments, as well as telephone, messaging and text, online, and mobile banking services. First Resource Bancorp, Inc. was founded in 2005 and is based in Exton, Pennsylvania.

About Webster Financial

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking. The Commercial Banking segment offers commercial real estate and equipment financing, business banking, asset-based lending, and commercial services; public sector finance; mortgage warehouse financing; sponsor and specialty financing services; credit, deposit, and cash flow management services; and wealth management solutions to business owners and operators, including trust, asset management, financial planning, insurance, retirement, and investment products, as well as treasury management services comprising derivative, treasury, accounts payable, accounts receivable, and trade products and services. This segment also provides commercial services, such as accounts receivable factoring and trade financing, payroll funding, and business process outsourcing. The HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter benefit services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. The Consumer Banking segment provides consumer deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers; and small business banking products, such as credit, deposit, and cash flow management products to businesses and professional service firms. The company offers online and mobile banking services. Webster Financial Corporation was founded in 1935 and is headquartered in Stamford, Connecticut.