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

Profitability

This table compares Wellesley Bancorp and United Financial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wellesley Bancorp 16.54% 9.74% 0.72%
United Financial Bancorp 19.34% 8.53% 0.84%

Risk & Volatility

Wellesley Bancorp has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, United Financial Bancorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Wellesley Bancorp and United Financial Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wellesley Bancorp 0 0 0 0 N/A
United Financial Bancorp 0 1 0 0 2.00

Institutional & Insider Ownership

10.4% of Wellesley Bancorp shares are owned by institutional investors. Comparatively, 67.5% of United Financial Bancorp shares are owned by institutional investors. 16.7% of Wellesley Bancorp shares are owned by company insiders. Comparatively, 3.4% of United Financial Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Wellesley Bancorp and United Financial Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wellesley Bancorp $36.22 million 2.18 $5.99 million N/A N/A
United Financial Bancorp $309.73 million 2.53 $59.91 million $1.17 13.11

United Financial Bancorp has higher revenue and earnings than Wellesley Bancorp.

Dividends

Wellesley Bancorp pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. United Financial Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.1%. United Financial Bancorp pays out 41.0% of its earnings in the form of a dividend. Wellesley Bancorp has raised its dividend for 3 consecutive years.

Summary

United Financial Bancorp beats Wellesley Bancorp on 7 of the 13 factors compared between the two stocks.

Wellesley Bancorp Company Profile

Wellesley Bancorp, Inc. operates as the bank holding company for Wellesley Bank that provides various financial services to individuals, non-profit organizations, small businesses, and other entities in eastern Massachusetts. Its deposit products include noninterest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising negotiable order of withdrawal and money market accounts; savings accounts; and certificates of deposit. The company also offers residential mortgage loans, commercial real estate loans, and construction loans, as well as home equity lines of credit; other consumer loans that consist of fixed-rate second mortgage loans, automobile loans, loans secured by passbook or certificate accounts, and overdraft loans; and commercial business loans, such as term loans, revolving lines of credit, and equipment loans. In addition, it provides investment advisory services and remote capture products; and engages in buying, selling, and holding securities. As of December 31, 2017, Wellesley Bancorp, Inc. operated through executive offices and five full service branch offices located in Wellesley, Newton, and Boston; limited- hour branch service office in Needham, Massachusetts; and one full-service branch office in Newton Centre and Boston, as well as wealth management offices located in Wellesley. The company was founded in 1911 and is headquartered in Wellesley, Massachusetts.

United Financial Bancorp Company Profile

United Financial Bancorp, Inc. operates as the holding company for United Bank that provides retail, commercial, and consumer banking services to individuals, families, and businesses. The company accepts various deposits, such as interest-bearing checking, non-interest-bearing checking, regular savings, money market savings, and time deposits. Its loan products include commercial loans, commercial real estate loans, residential and commercial construction loans, residential real estate loans collateralized by one-to-four family residences, home equity lines of credit, fixed rate loans, marine floor plan loans, and other consumer loans. In addition, the company provides various financial advisory services. It has 53 banking offices, 64 ATMs, and 7 loan production offices in Connecticut and Massachusetts. The company was formerly known as Rockville Financial, Inc. and changed its name to United Financial Bancorp, Inc. in April 2014. United Financial Bancorp, Inc. was founded in 1858 and is headquartered in Hartford, Connecticut.

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