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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western New England Bancorp 0 0 3 0 3.00
Magyar Bancorp 0 0 0 0 N/A

Western New England Bancorp presently has a consensus target price of $8.17, indicating a potential upside of 44.80%. Given Western New England Bancorp’s higher probable upside, equities research analysts plainly believe Western New England Bancorp is more favorable than Magyar Bancorp.

Risk and Volatility

Western New England Bancorp has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Magyar Bancorp has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Insider and Institutional Ownership

52.8% of Western New England Bancorp shares are held by institutional investors. Comparatively, 19.1% of Magyar Bancorp shares are held by institutional investors. 5.6% of Western New England Bancorp shares are held by insiders. Comparatively, 3.9% of Magyar Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Western New England Bancorp 11.68% 4.67% 0.48%
Magyar Bancorp 7.60% 3.95% 0.33%

Earnings and Valuation

This table compares Western New England Bancorp and Magyar Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western New England Bancorp $91.82 million 1.58 $13.35 million $0.51 11.06
Magyar Bancorp $29.24 million 1.61 $3.00 million N/A N/A

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

Summary

Western New England Bancorp beats Magyar Bancorp on 9 of the 12 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 commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including checking, savings, business and municipal savings, money market and business sweep, and individual retirement accounts; time deposits; term certificates of deposit; and interest on lawyers trust accounts. It also offers commercial real estate loans secured by one-to-four and multi-family apartment buildings, office, industrial, or mixed-use facilities, or other commercial properties; commercial construction loans; commercial and industrial loans, such as revolving lines of credit, working capital loans, equipment financing and term loans; residential real estate loans secured by one-to-four family residential properties; home equity loans; and consumer loans. In addition, the company provides automated teller machines (ATM), telephone and online banking, remote deposit capture, cash management services, overdraft facilities, night deposit services, and safe deposit facilities. It operates a network of 22 banking offices, 24 free-standing ATMs, and 24 seasonal or temporary ATMS located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Granby and Enfield, 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 Magyar Bancorp

Magyar Bancorp, Inc. operates as the mid-tier stock holding company for Magyar Bank that provides various banking products and services to families and businesses in New Jersey, the United States. Its product portfolio includes various deposit products, such as demand, NOW, money market, savings, and retirement accounts, as well as certificates of deposit; and loan products comprising one-to four-family residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, small business administration loans, and construction loans, as well as consumer loans, which primarily include secured demand loans. The company also provides non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and investment securities. It operates through seven branch locations in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison; and a loan product office in New Jersey. The company was founded in 1922 and is headquartered in New Brunswick, New Jersey. Magyar Bancorp, Inc. is a subsidiary of Magyar Bancorp, MHC.

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