Western New England Bancorp (NASDAQ:WNEB) and First Guaranty Bancshares (NASDAQ:FGBI) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.
Western New England Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. First Guaranty Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. Western New England Bancorp pays out 28.6% of its earnings in the form of a dividend. First Guaranty Bancshares has increased its dividend for 3 consecutive years. First Guaranty Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
55.4% of Western New England Bancorp shares are owned by institutional investors. Comparatively, 13.6% of First Guaranty Bancshares shares are owned by institutional investors. 5.4% of Western New England Bancorp shares are owned by insiders. Comparatively, 39.6% of First Guaranty Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Western New England Bancorp and First Guaranty Bancshares’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western New England Bancorp||$88.22 million||3.27||$16.41 million||$0.56||17.59|
|First Guaranty Bancshares||$75.89 million||2.44||$11.75 million||N/A||N/A|
Western New England Bancorp has higher revenue and earnings than First Guaranty Bancshares.
Volatility & Risk
Western New England Bancorp has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, First Guaranty Bancshares has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.
This table compares Western New England Bancorp and First Guaranty Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western New England Bancorp||18.60%||6.71%||0.77%|
|First Guaranty Bancshares||17.10%||9.94%||0.81%|
This is a breakdown of current recommendations and price targets for Western New England Bancorp and First Guaranty Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western New England Bancorp||0||0||2||0||3.00|
|First Guaranty Bancshares||0||1||0||0||2.00|
Western New England Bancorp currently has a consensus price target of $10.75, suggesting a potential upside of 9.14%. First Guaranty Bancshares has a consensus price target of $28.00, suggesting a potential upside of 33.02%. Given First Guaranty Bancshares’ higher possible upside, analysts clearly believe First Guaranty Bancshares is more favorable than Western New England Bancorp.
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 First Guaranty Bancshares
First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services to businesses, professionals, and individuals in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits. The company also provides loans, such as non-farm non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, construction and land development loans, agricultural loans, farmland loans, consumer and other loans, and multifamily loans. In addition, it offers a range of consumer services, including personal and commercial credit cards, remote deposit capture, safe deposit boxes, official checks, Internet banking, automated teller machines, online bill pay, mobile banking, and lockbox services. The company operates through 27 banking facilities located in market services areas of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, Dallas-Fort Worth-Arlington, and Waco. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.
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