WSFS Financial (NASDAQ:WSFS) and Emclaire Financial (NASDAQ:EMCF) Critical Analysis

WSFS Financial (NASDAQ:WSFSGet Rating) and Emclaire Financial (NASDAQ:EMCFGet Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Risk & Volatility

WSFS Financial has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Emclaire Financial has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
WSFS Financial 23.44% 9.91% 1.18%
Emclaire Financial 25.95% 12.46% 1.00%

Insider & Institutional Ownership

88.3% of WSFS Financial shares are held by institutional investors. Comparatively, 14.3% of Emclaire Financial shares are held by institutional investors. 2.0% of WSFS Financial shares are held by company insiders. Comparatively, 15.5% of Emclaire Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for WSFS Financial and Emclaire Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSFS Financial 0 3 1 0 2.25
Emclaire Financial 0 0 0 0 N/A

WSFS Financial currently has a consensus price target of $54.50, suggesting a potential upside of 10.79%. Given WSFS Financial’s higher probable upside, equities research analysts clearly believe WSFS Financial is more favorable than Emclaire Financial.

Dividends

WSFS Financial pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Emclaire Financial pays an annual dividend of $1.24 per share and has a dividend yield of 3.1%. WSFS Financial pays out 18.1% of its earnings in the form of a dividend. Emclaire Financial pays out 32.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. WSFS Financial has increased its dividend for 2 consecutive years and Emclaire Financial has increased its dividend for 10 consecutive years. Emclaire Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares WSFS Financial and Emclaire Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WSFS Financial $641.85 million 4.85 $271.44 million $3.32 14.82
Emclaire Financial $41.17 million 2.66 $10.17 million $3.82 10.47

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

Summary

WSFS Financial beats Emclaire Financial on 10 of the 16 factors compared between the two stocks.

About WSFS Financial

(Get Rating)

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. It offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as accepts jumbo certificates of deposit from individuals, businesses, and municipalities. The company also provides a range of loans, which comprise fixed and adjustable rate residential loans; commercial real estate mortgage loans; commercial construction loans to developers; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion, and other business purposes; and consumer credit products, such as home improvement, automobile, and other secured and unsecured personal installment loans, as well as home equity lines and unsecured lines of credit, and government-insured reverse mortgages. In addition, it offers various third-party investment and insurance products, such as single-premium annuities, whole life policies, and securities; investment advisory services to high net worth individuals and institutions; mortgage and title services; and leases small equipment and fixed assets, as well as cash management, trust, and wealth management services. Further, the company provides ATM vault cash, smart safe, and other cash logistics services; and online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, ATM processing equipment sales, and deposit safe cash logistics services. As of December 31, 2020, it operated 112 offices, including 52 in Pennsylvania, 42 in Delaware, 16 in New Jersey, 1 in Virginia, and 1 in Nevada. The company was founded in 1832 and is headquartered in Wilmington, Delaware.

About Emclaire Financial

(Get Rating)

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; savings and time deposits; non-interest bearing and interest-bearing demand deposit accounts; and money market accounts. Its loan portfolio comprises one-to-four family mortgage loans, home equity loans, commercial business and commercial real estate loans, consumer loans, and loans to one borrower. The company operates a network of 19 retail branch offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer counties, and Pennsylvania. The company was founded in 1900 and is headquartered in Emlenton, Pennsylvania.

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