West Shore Bank (OTCMKTS:WSSH) and Franklin Financial Services (NASDAQ:FRAF) Head-To-Head Survey

West Shore Bank (OTCMKTS:WSSH) and Franklin Financial Services (NASDAQ:FRAF) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

24.8% of Franklin Financial Services shares are owned by institutional investors. 7.4% of Franklin Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

West Shore Bank has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500. Comparatively, Franklin Financial Services has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500.

Profitability

This table compares West Shore Bank and Franklin Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Shore Bank	N/A	N/A	N/A
Franklin Financial Services	15.90%	13.06%	0.94%

Dividends

West Shore Bank pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Franklin Financial Services pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Franklin Financial Services pays out 27.8% of its earnings in the form of a dividend. Franklin Financial Services has raised its dividend for 1 consecutive years. Franklin Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations for West Shore Bank and Franklin Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Shore Bank	0	0	0	0	0.00
Franklin Financial Services	0	0	2	0	3.00

Franklin Financial Services has a consensus price target of $59.00, indicating a potential upside of 7.22%. Given Franklin Financial Services’ stronger consensus rating and higher probable upside, analysts clearly believe Franklin Financial Services is more favorable than West Shore Bank.

Valuation and Earnings

This table compares West Shore Bank and Franklin Financial Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Shore Bank	$48.89 million	0.99	$4.41 million	N/A	N/A
Franklin Financial Services	$87.44 million	2.83	$21.23 million	$4.74	11.61

Franklin Financial Services has higher revenue and earnings than West Shore Bank.

Summary

Franklin Financial Services beats West Shore Bank on 13 of the 15 factors compared between the two stocks.

About West Shore Bank

West Shore Bank Corp. operates as the bank holding company for West Shore Bank that provides various banking products and services for individuals and businesses. The company accepts checking, saving, money market, certificates of deposit, and individual retirement accounts. Its loan products include auto, recreational, personal term, commercial real estate, small business administration, municipal, business term, and home mortgage and equity loans; business lines of credit; and letters of credit. The company also offers ATM/debit, credit, and gift and travel cards; wealth planning process, investment management, trusts and estates, retirement planning, west shore investment services; savings bonds; and direct deposit, overdraft, safe deposit boxes, wire transfer, remote deposit capture, merchant card, ACH and wire, sweep accounts, positive pay, bill pay, and online and mobile banking services. The company was founded in 1898 and is based in Ludington, Michigan.

About Franklin Financial Services

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans; consumer loans comprising unsecured personal lines of credit and installment loans; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, and custodial services, as well as non-trust related investment services; sells mutual funds, annuities, and insurance products; and offers safe deposit, pension, and fiduciary services. Further, the company engages in non-bank investment activities, such as venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.