Critical Comparison: OFG Bancorp (NYSE:OFG) vs. WCF Bancorp (OTCMKTS:WCFB)

OFG Bancorp (NYSE:OFG) and WCF Bancorp (OTCMKTS:WCFB) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Valuation and Earnings

This table compares OFG Bancorp and WCF Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFG Bancorp	$902.28 million	2.32	$205.10 million	$4.84	10.22
WCF Bancorp	$12.05 million	0.94	-$2.28 million	N/A	N/A

OFG Bancorp has higher revenue and earnings than WCF Bancorp.

Institutional & Insider Ownership

92.7% of OFG Bancorp shares are owned by institutional investors. 1.2% of OFG Bancorp shares are owned by company insiders. Comparatively, 0.8% of WCF Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for OFG Bancorp and WCF Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFG Bancorp	0	4	2	0	2.33
WCF Bancorp	0	0	0	0	0.00

OFG Bancorp presently has a consensus target price of $47.20, suggesting a potential downside of 4.62%. Given OFG Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe OFG Bancorp is more favorable than WCF Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OFG Bancorp	23.45%	15.62%	1.74%
WCF Bancorp	N/A	N/A	N/A

Volatility & Risk

OFG Bancorp has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, WCF Bancorp has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Summary

OFG Bancorp beats WCF Bancorp on 12 of the 12 factors compared between the two stocks.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

About WCF Bancorp

WCF Bancorp, Inc. operates as the bank holding company for WCF Financial Bank that provides commercial banking products and services to individuals and businesses. The company offers checking and saving accounts; certificates of deposit; personal, mortgage, business, agricultural, and commercial real estate loans; debit and credit cards; and other products. It operates through full-service offices in Webster City, Independence, and Tama, Iowa. The company was founded in 1934 and is based in Webster City, Iowa.