Sterling Bancorp (NASDAQ: WNEB) and Western New England Bancorp (NASDAQ:WNEB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Valuation & Earnings

This table compares Sterling Bancorp and Western New England Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sterling Bancorp $139.34 million 4.83 $37.97 million N/A N/A
Western New England Bancorp $82.54 million 3.91 $12.32 million $0.50 21.70

Sterling Bancorp has higher revenue and earnings than Western New England Bancorp.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sterling Bancorp and Western New England Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sterling Bancorp 0 0 1 0 3.00
Western New England Bancorp 0 3 1 0 2.25

Sterling Bancorp currently has a consensus target price of $14.50, suggesting a potential upside of 14.26%. Western New England Bancorp has a consensus target price of $11.63, suggesting a potential upside of 7.14%. Given Sterling Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Sterling Bancorp is more favorable than Western New England Bancorp.

Profitability

This table compares Sterling Bancorp and Western New England Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sterling Bancorp N/A 15.83% 1.42%
Western New England Bancorp 14.08% 6.48% 0.76%

Institutional and Insider Ownership

30.7% of Sterling Bancorp shares are owned by institutional investors. Comparatively, 55.5% of Western New England Bancorp shares are owned by institutional investors. 3.0% of Sterling Bancorp shares are owned by company insiders. Comparatively, 5.4% of Western New England Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Sterling Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Western New England Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Western New England Bancorp pays out 32.0% of its earnings in the form of a dividend.

Summary

Sterling Bancorp beats Western New England Bancorp on 8 of the 12 factors compared between the two stocks.

Sterling Bancorp Company Profile

Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in San Francisco and Los Angeles, California and New York City, and a loan production office in Seattle, Washington. Sterling offers a broad range of loan products to the residential and commercial markets, as well as retail and business banking services. Sterling also has an operations center and a branch in Southfield, Michigan. Sterling was named as the top performing community bank in the United States with total assets between $1 billion and $10 billion in 2017 by SNL/S&P Global Market Intelligence.

Western New England Bancorp Company Profile

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.

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