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

Profitability

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

Net Margins Return on Equity Return on Assets
Western New England Bancorp 14.08% 6.48% 0.76%
Brookline Bancorp 19.97% 8.53% 1.03%

Analyst Ratings

This is a breakdown of current ratings for Western New England Bancorp and Brookline Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western New England Bancorp 0 3 1 0 2.25
Brookline Bancorp 0 3 0 0 2.00

Western New England Bancorp currently has a consensus target price of $11.63, indicating a potential upside of 8.64%. Brookline Bancorp has a consensus target price of $17.50, indicating a potential upside of 0.00%. Given Western New England Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Western New England Bancorp is more favorable than Brookline Bancorp.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western New England Bancorp $82.54 million 3.86 $12.32 million $0.50 21.40
Brookline Bancorp $295.22 million 4.77 $50.51 million $0.80 21.88

Brookline Bancorp has higher revenue and earnings than Western New England Bancorp. Western New England Bancorp is trading at a lower price-to-earnings ratio than Brookline Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Western New England Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Brookline Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. Western New England Bancorp pays out 32.0% of its earnings in the form of a dividend. Brookline Bancorp pays out 50.0% 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.

Volatility & Risk

Western New England Bancorp has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Brookline Bancorp has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

55.5% of Western New England Bancorp shares are held by institutional investors. Comparatively, 76.3% of Brookline Bancorp shares are held by institutional investors. 5.4% of Western New England Bancorp shares are held by company insiders. Comparatively, 2.5% of Brookline Bancorp 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.

Summary

Brookline Bancorp beats Western New England Bancorp on 10 of the 16 factors compared between the two stocks.

About Western New England Bancorp

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.

About Brookline Bancorp

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include non-interest-bearing demand checking accounts, NOW accounts, savings accounts, and money market accounts. The company's loan portfolio comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; loans and leases used to finance equipment used by small businesses; financing for construction and development projects; and home equity and other consumer loans. It also provides cash management, investment advisory, and online banking services, as well as invests in debt and equity securities. As of December 31, 2017, the Company operated 51 full-service banking offices in greater Boston, the north shore of Massachusetts, and Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts.

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