1st Constitution Bancorp (NASDAQ: WCFB) and WCF Bancorp (NASDAQ:WCFB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

34.8% of 1st Constitution Bancorp shares are held by institutional investors. Comparatively, 19.4% of WCF Bancorp shares are held by institutional investors. 14.6% of 1st Constitution Bancorp shares are held by company insiders. Comparatively, 0.6% of WCF Bancorp shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations for 1st Constitution Bancorp and WCF Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1st Constitution Bancorp 0 0 0 0 N/A
WCF Bancorp 0 0 0 0 N/A

Profitability

This table compares 1st Constitution Bancorp and WCF Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1st Constitution Bancorp 14.43% 9.71% 1.00%
WCF Bancorp 2.15% 0.37% 0.08%

Risk & Volatility

1st Constitution Bancorp has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, WCF Bancorp has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Dividends

1st Constitution Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.1%. 1st Constitution Bancorp pays out 22.6% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares 1st Constitution Bancorp and WCF Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
1st Constitution Bancorp $49.90 million 3.47 $6.92 million $1.06 19.48
WCF Bancorp $4.43 million 5.39 -$110,000.00 N/A N/A

1st Constitution Bancorp has higher revenue and earnings than WCF Bancorp.

Summary

1st Constitution Bancorp beats WCF Bancorp on 8 of the 11 factors compared between the two stocks.

1st Constitution Bancorp Company Profile

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central and northeastern New Jersey areas. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and NOW accounts; and non-interest bearing demand, savings, and time deposits, as well as certificates of deposit. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of December 31, 2017, the company operated through 17 branch offices, as well as 2 residential mortgage loan production offices in New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.

WCF Bancorp Company Profile

WCF Bancorp, Inc. operates as the savings and loan holding company for WCF Financial Bank that various banking products and services. The company accepts deposit accounts, such as statement savings, money market, and NOW accounts; and certificates of deposit. Its loan products include one-to-four family residential real estate loans; non-owner occupied one-to-four family residential real estate loans; commercial real estate loans; and consumer loans comprising new and used automobile loans, home improvement and home equity loans, recreational vehicle loans, and loans secured by certificates of deposits. The company also invests in securities. It operates one full-service branch in Independence, Iowa. WCF Bancorp, Inc. is based in Webster City, Iowa.

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