Critical Comparison: Sterling Bancorp (SBT) versus WCF Bancorp (WCFB)

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Sterling Bancorp (NASDAQ:SBT) and WCF Bancorp (NASDAQ:WCFB) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Sterling Bancorp and WCF Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sterling Bancorp 0 0 1 0 3.00
WCF Bancorp 0 0 0 0 N/A

Sterling Bancorp presently has a consensus target price of $14.50, suggesting a potential upside of 32.06%. Given Sterling Bancorp’s higher probable upside, analysts plainly believe Sterling Bancorp is more favorable than WCF Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Sterling Bancorp N/A 15.83% 1.42%
WCF Bancorp 1.82% 0.31% 0.07%

Valuation and Earnings

This table compares Sterling Bancorp and WCF Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sterling Bancorp $139.34 million 4.18 $37.97 million N/A N/A
WCF Bancorp $4.44 million 5.30 -$110,000.00 N/A N/A

Sterling Bancorp has higher revenue and earnings than WCF Bancorp.

Dividends

Sterling Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%.

Insider & Institutional Ownership

30.7% of Sterling Bancorp shares are owned by institutional investors. Comparatively, 19.4% of WCF Bancorp shares are owned by institutional investors. 3.0% of Sterling Bancorp shares are owned by insiders. Comparatively, 0.6% of WCF Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Sterling Bancorp beats WCF Bancorp on 8 of the 11 factors compared between the two stocks.

Sterling Bancorp Company Profile

Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in San Francisco and Los Angeles, California and New York City, and a loan production office in Seattle, Washington. Sterling offers a broad range of loan products to the residential and commercial markets, as well as retail and business banking services. Sterling also has an operations center and a branch in Southfield, Michigan. Sterling was named as the top performing community bank in the United States with total assets between $1 billion and $10 billion in 2017 by SNL/S&P Global Market Intelligence.

WCF Bancorp Company Profile

WCF Bancorp, Inc. operates as the savings and loan holding company for WCF Financial Bank that various banking products and services. The company accepts deposit accounts, such as statement savings, money market, and NOW accounts; and certificates of deposit. Its loan products include one-to-four family residential real estate loans; non-owner occupied one-to-four family residential real estate loans; commercial real estate loans; and consumer loans comprising new and used automobile loans, home improvement and home equity loans, recreational vehicle loans, and loans secured by certificates of deposits. The company also invests in securities. It operates one full-service branch in Independence, Iowa. WCF Bancorp, Inc. is based in Webster City, Iowa.

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