Head to Head Review: Valley National Bancorp (VLY) and Emclaire Financial (EMCF)

Valley National Bancorp (NYSE:VLY) and Emclaire Financial (NASDAQ:EMCF) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Insider & Institutional Ownership

55.9% of Valley National Bancorp shares are owned by institutional investors. Comparatively, 6.2% of Emclaire Financial shares are owned by institutional investors. 3.5% of Valley National Bancorp shares are owned by company insiders. Comparatively, 16.6% of Emclaire Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Valley National Bancorp and Emclaire Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valley National Bancorp 0 2 2 0 2.50
Emclaire Financial 0 0 0 0 N/A

Valley National Bancorp presently has a consensus target price of $13.69, indicating a potential upside of 34.32%. Given Valley National Bancorp’s higher possible upside, analysts plainly believe Valley National Bancorp is more favorable than Emclaire Financial.

Earnings and Valuation

This table compares Valley National Bancorp and Emclaire Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valley National Bancorp N/A N/A N/A N/A N/A
Emclaire Financial $35.17 million 2.40 $4.21 million N/A N/A

Emclaire Financial has higher revenue and earnings than Valley National Bancorp.

Dividends

Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 4.3%. Emclaire Financial pays an annual dividend of $1.16 per share and has a dividend yield of 3.7%. Emclaire Financial has increased its dividend for 3 consecutive years.

Profitability

This table compares Valley National Bancorp and Emclaire Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valley National Bancorp N/A N/A N/A
Emclaire Financial 13.21% 7.23% 0.59%

Summary

Emclaire Financial beats Valley National Bancorp on 6 of the 10 factors compared between the two stocks.

About Valley National Bancorp

Valley National Bancorp operates as the holding company for the Valley National Bank that provides commercial, retail, trust, and investment services. The company operates through Commercial Lending, Consumer Lending, and Investment Management segments. Its deposit products include non-interest bearing, savings, NOW, and money market deposits, as well as certificates of deposit. The company's loan products comprise construction, residential mortgage, home equity, automobile, and floating rate and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans, credit card loans, personal lines of credit, personal loans, and loans secured by cash surrender value of life insurance. It also invests in securities and interest-bearing deposits with banks, such as fixed rate securities and federal funds; and offers international banking services, such as standby letters of credit, documentary letters of credit and related products, and other ancillary services. In addition, the company provides asset management advisory, trust, and asset-based lending support services; property and casualty, life, health, and title insurance products; and health care equipment lending and other commercial equipment leases, as well as real estate related investments. Further, it offers other banking services comprising automated teller machine, telephone and Internet banking, remote deposit capturing, overdraft, drive-in and night deposit, and safe deposit services. As of December 31, 2017, the company operated 237 branches in northern and central New Jersey; the New York City boroughs of Manhattan, Brooklyn, Queens, and Long Island; and southeast and central Florida. Valley National Bancorp was founded in 1927 and is headquartered in Wayne, New Jersey.

About Emclaire Financial

Emclaire Financial Corp operates as the bank holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania. The company's deposit products include checking, savings, and term certificate accounts; time deposits; noninterest bearing and interest bearing demand deposit accounts; and money market accounts. Its loan portfolio comprises one-to-four family mortgage loans, residential and commercial mortgages loans, home equity loans, and commercial business and commercial real estate loans; and consumer loans, such as loans for automobile purchases, home improvements not secured by real estate, capital, and other personal expenditures, as well as unsecured revolving personal lines of credit and overdraft protection. The company, through its subsidiary, Emclaire Settlement Services, LLC, also provides real estate settlement services. As of February 20, 2019, it operated 20 full service offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer counties in Pennsylvania, as well as in Hancock County, West Virginia. The company was founded in 1900 and is headquartered in Emlenton, Pennsylvania.

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