Contrasting Wintrust Financial (NASDAQ:WTFC) & USCB Financial (NASDAQ:USCB)

USCB Financial (NASDAQ:USCBGet Rating) and Wintrust Financial (NASDAQ:WTFCGet Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for USCB Financial and Wintrust Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USCB Financial 0 1 2 0 2.67
Wintrust Financial 0 0 6 1 3.14

USCB Financial presently has a consensus target price of $15.50, suggesting a potential upside of 20.62%. Wintrust Financial has a consensus target price of $115.29, suggesting a potential upside of 33.11%. Given Wintrust Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Wintrust Financial is more favorable than USCB Financial.

Earnings and Valuation

This table compares USCB Financial and Wintrust Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
USCB Financial $67.42 million 3.81 $21.08 million ($3.93) -3.27
Wintrust Financial $1.86 billion 2.66 $466.15 million $7.12 12.16

Wintrust Financial has higher revenue and earnings than USCB Financial. USCB Financial is trading at a lower price-to-earnings ratio than Wintrust Financial, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

72.9% of USCB Financial shares are held by institutional investors. Comparatively, 89.7% of Wintrust Financial shares are held by institutional investors. 1.4% of Wintrust Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares USCB Financial and Wintrust Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USCB Financial 30.81% 58.30% 5.71%
Wintrust Financial 23.67% 10.95% 0.90%

Summary

Wintrust Financial beats USCB Financial on 10 of the 14 factors compared between the two stocks.

USCB Financial Company Profile (Get Rating)

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that provides various banking products and services to small-to-medium sized businesses. The company accepts checking, savings, money market, and time deposit accounts; and certificates of deposit. Its loan products include residential real estate loans; commercial real estate loans; commercial and industrial loans; foreign banks loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers treasury, commercial payments, cash management, and online banking services. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.

Wintrust Financial Company Profile (Get Rating)

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. The company operates 173 banking facilities and 228 ATMs in the Chicago metropolitan area, southern Wisconsin, northwest Indiana, and Florida. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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