Beneficial Bancorp (NASDAQ:BNCL) and Wellesley Bancorp (NASDAQ:WEBK) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares Beneficial Bancorp and Wellesley Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
68.5% of Beneficial Bancorp shares are held by institutional investors. Comparatively, 10.4% of Wellesley Bancorp shares are held by institutional investors. 5.5% of Beneficial Bancorp shares are held by insiders. Comparatively, 16.7% of Wellesley Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for Beneficial Bancorp and Wellesley Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Beneficial Bancorp presently has a consensus target price of $19.83, suggesting a potential upside of 24.19%. Given Beneficial Bancorp’s higher probable upside, research analysts clearly believe Beneficial Bancorp is more favorable than Wellesley Bancorp.
Beneficial Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Wellesley Bancorp pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. Wellesley Bancorp has increased its dividend for 3 consecutive years.
Earnings & Valuation
This table compares Beneficial Bancorp and Wellesley Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Beneficial Bancorp||$240.65 million||4.96||$47.84 million||N/A||N/A|
|Wellesley Bancorp||$36.22 million||2.19||$5.99 million||N/A||N/A|
Beneficial Bancorp has higher revenue and earnings than Wellesley Bancorp.
Risk and Volatility
Beneficial Bancorp has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Wellesley Bancorp has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Beneficial Bancorp beats Wellesley Bancorp on 10 of the 14 factors compared between the two stocks.
About Beneficial Bancorp
Beneficial Bancorp, Inc., together with its subsidiaries, provides consumer and commercial banking services to individuals, businesses, and nonprofit organizations in Philadelphia and Southern New Jersey area. The company accepts various deposit products, including non-interest bearing demand deposits, such as individual checking accounts; interest-bearing demand accounts comprising NOW, municipal, and money market accounts; savings accounts; certificates of deposit; and commercial checking accounts, as well as checking accounts primarily for small businesses. It also provides cash management services that include remote deposit, lockbox service, and sweep accounts; and certificate of deposit account registry service and brokered certificates of deposit. In addition, the company offers a portfolio of commercial loans and leases, which comprises business loans, small business leases, commercial real estate loans, and commercial construction loans; residential loans, including one- to four-family residential real estate loans; and consumer personal loans, such as home equity loans and lines of credit, automobile loans, personal loans, recreational vehicles, and educational loans. Further, it provides insurance brokerage and wealth management services; and property, casualty, life, and health and benefits insurance services. Additionally, the company holds title to various securities and other investments; holds and manages other real estate owned properties. The company was founded in 1853 and is headquartered in Philadelphia, Pennsylvania.
About Wellesley Bancorp
Wellesley Bancorp, Inc. operates as the bank holding company for Wellesley Bank that provides various financial services to individuals, non-profit organizations, small businesses, and other entities in eastern Massachusetts. Its deposit products include noninterest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising negotiable order of withdrawal and money market accounts; savings accounts; and certificates of deposit. The company also offers residential mortgage loans, commercial real estate loans, and construction loans, as well as home equity lines of credit; other consumer loans that consist of fixed-rate second mortgage loans, automobile loans, loans secured by passbook or certificate accounts, and overdraft loans; and commercial business loans, such as term loans, revolving lines of credit, and equipment loans. In addition, it provides investment advisory services and remote capture products; and engages in buying, selling, and holding securities. As of December 31, 2017, Wellesley Bancorp, Inc. operated through executive offices and five full service branch offices located in Wellesley, Newton, and Boston; limited- hour branch service office in Needham, Massachusetts; and one full-service branch office in Newton Centre and Boston, as well as wealth management offices located in Wellesley. The company was founded in 1911 and is headquartered in Wellesley, Massachusetts.
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