Critical Contrast: Western New England Bancorp (WNEB) versus Codorus Valley Bancorp (CVLY)

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Western New England Bancorp (NASDAQ: WNEB) and Codorus Valley Bancorp (NASDAQ:CVLY) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Western New England Bancorp and Codorus Valley Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western New England Bancorp 14.08% 6.48% 0.76%
Codorus Valley Bancorp 17.13% 10.71% 1.03%

Analyst Ratings

This is a summary of current ratings for Western New England Bancorp and Codorus Valley Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western New England Bancorp 0 3 1 0 2.25
Codorus Valley Bancorp 0 0 0 0 N/A

Western New England Bancorp presently has a consensus target price of $11.63, indicating a potential upside of 7.64%. Given Western New England Bancorp’s higher possible upside, equities research analysts clearly believe Western New England Bancorp is more favorable than Codorus Valley Bancorp.

Insider and Institutional Ownership

54.8% of Western New England Bancorp shares are owned by institutional investors. Comparatively, 53.1% of Codorus Valley Bancorp shares are owned by institutional investors. 5.4% of Western New England Bancorp shares are owned by insiders. Comparatively, 3.9% of Codorus Valley Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Western New England Bancorp and Codorus Valley Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western New England Bancorp $82.54 million 3.89 $12.32 million $0.50 21.60
Codorus Valley Bancorp $81.94 million 3.48 $12.00 million N/A N/A

Western New England Bancorp has higher revenue and earnings than Codorus Valley Bancorp.

Risk and Volatility

Western New England Bancorp has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Codorus Valley Bancorp has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Dividends

Western New England Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Codorus Valley Bancorp pays an annual dividend of $0.62 per share and has a dividend yield of 1.9%. Western New England Bancorp pays out 32.0% of its earnings in the form of a dividend. Codorus Valley Bancorp has increased its dividend for 6 consecutive years. Codorus Valley Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Western New England Bancorp beats Codorus Valley Bancorp on 8 of the 15 factors compared between the two stocks.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides community banking products and services to individuals and businesses. The company accepts various deposit accounts, including time deposits, money market accounts, savings accounts, demand accounts, and interest bearing checking accounts. It also offers commercial and industrial loans comprising business installment loans, vehicle and equipment financing, lines of credit, and other commercial loans; commercial real estate loans to finance the purchase of apartment buildings, business properties, and multi-family investment properties; construction loans to the developers of commercial and residential properties; residential real estate loans and originations; home equity loans; and consumer loans. In addition, the company provides complementary commercial products and services consisting of commercial deposit accounts, cash management services, Internet banking, sweep accounts, ATM network, and night deposit services; and invests in government-sponsored enterprise debt securities and municipal bonds. It operates a network of 21 banking offices located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield, and Westfield, Massachusetts, Granby and Enfield, and Connecticut. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. Western New England Bancorp, Inc. was founded in 1853 and is headquartered in Westfield, Massachusetts.

About Codorus Valley Bancorp

Codorus Valley Bancorp, Inc. operates as the bank holding company for the PeoplesBank that provides various business and consumer banking services. The company accepts demand, money market, time, and savings deposits. It also offers commercial real estate loans; industrial loans; construction loans; commercial loans, such as builder and developer, commercial and residential real estate investor, hotel/motel, wholesale and retail, agriculture, manufacturing, and other loans; and consumer loans, including residential mortgage, home equity, and other loans. In addition, it provides personal and mortgage banking, wealth management, and real estate settlement services; and sells non-deposit investment products. As of December 31, 2017, the company operated 26 full service financial centers located in York, Cumberland, and Lancaster counties in Pennsylvania, as well as Baltimore, Harford, and Carroll counties in Maryland. Codorus Valley Bancorp, Inc. was founded in 1864 and is headquartered in York, Pennsylvania.

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