Analyzing Wayne Savings Bancshares (OTCMKTS:WAYN) & Territorial Bancorp (NASDAQ:TBNK)

Wayne Savings Bancshares (OTCMKTS:WAYN – Get Rating) and Territorial Bancorp (NASDAQ:TBNK – Get Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Dividends

Wayne Savings Bancshares pays an annual dividend of $0.92 per share and has a dividend yield of 3.4%. Territorial Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 4.5%. Wayne Savings Bancshares pays out 23.3% of its earnings in the form of a dividend. Territorial Bancorp pays out 50.8% 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.

Earnings & Valuation

This table compares Wayne Savings Bancshares and Territorial Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wayne Savings Bancshares	$28.55 million	2.08	$9.00 million	$3.95	6.88
Territorial Bancorp	$66.91 million	2.77	$16.16 million	$1.81	11.25

Territorial Bancorp has higher revenue and earnings than Wayne Savings Bancshares. Wayne Savings Bancshares is trading at a lower price-to-earnings ratio than Territorial Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wayne Savings Bancshares and Territorial Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wayne Savings Bancshares	31.54%	20.19%	1.35%
Territorial Bancorp	24.14%	6.29%	0.75%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Wayne Savings Bancshares and Territorial Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wayne Savings Bancshares	0	0	0	0	N/A
Territorial Bancorp	1	0	0	0	1.00

Territorial Bancorp has a consensus price target of $23.00, suggesting a potential upside of 12.91%. Given Territorial Bancorp’s higher probable upside, analysts clearly believe Territorial Bancorp is more favorable than Wayne Savings Bancshares.

Volatility & Risk

Wayne Savings Bancshares has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Territorial Bancorp has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

12.3% of Wayne Savings Bancshares shares are owned by institutional investors. Comparatively, 43.5% of Territorial Bancorp shares are owned by institutional investors. 3.2% of Wayne Savings Bancshares shares are owned by company insiders. Comparatively, 9.1% of Territorial Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Territorial Bancorp beats Wayne Savings Bancshares on 9 of the 14 factors compared between the two stocks.

About Wayne Savings Bancshares

(Get Rating)

Wayne Savings Bancshares, Inc. is a holding company, which engages in the provision of financial services. It offers checking, savings, money market, home loans, and financial planning. The company was founded on August 5, 1997 and is headquartered Wooster, OH.

About Territorial Bancorp

(Get Rating)

Territorial Bancorp, Inc. operates as the bank holding company for Territorial Savings Bank, which provides financial services to individuals, families, and businesses in Hawaii. Its business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in one- to four-family residential mortgage loans and investment securities. The firm operates through the following portfolio segments: Home Equity Loans and Lines of Credit, and Consumer and Other. The company was founded on November 3, 2008 and is headquartered in Honolulu, HI.