Contrasting WSFS Financial Corporation (NASDAQ:WSFS) and Porter Bancorp (PBIB)

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

Risk and Volatility

WSFS Financial Corporation has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Porter Bancorp has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Earnings & Valuation

This table compares WSFS Financial Corporation and Porter Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WSFS Financial Corporation $307.38 million 5.19 $76.35 million $2.43 20.88
Porter Bancorp $35.80 million 2.11 -$1.46 million ($0.24) -51.46

WSFS Financial Corporation has higher revenue and earnings than Porter Bancorp. Porter Bancorp is trading at a lower price-to-earnings ratio than WSFS Financial Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WSFS Financial Corporation and Porter Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WSFS Financial Corporation 21.27% 11.07% 1.15%
Porter Bancorp -3.65% -4.58% -0.16%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WSFS Financial Corporation and Porter Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSFS Financial Corporation 0 1 3 0 2.75
Porter Bancorp 0 0 0 0 N/A

WSFS Financial Corporation presently has a consensus price target of $51.33, suggesting a potential upside of 1.15%. Given WSFS Financial Corporation’s higher possible upside, research analysts plainly believe WSFS Financial Corporation is more favorable than Porter Bancorp.

Dividends

WSFS Financial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Porter Bancorp does not pay a dividend. WSFS Financial Corporation pays out 11.5% of its earnings in the form of a dividend.

Insider & Institutional Ownership

78.5% of WSFS Financial Corporation shares are owned by institutional investors. Comparatively, 17.9% of Porter Bancorp shares are owned by institutional investors. 4.9% of WSFS Financial Corporation shares are owned by company insiders. Comparatively, 28.7% of Porter Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

WSFS Financial Corporation beats Porter Bancorp on 11 of the 14 factors compared between the two stocks.

About WSFS Financial Corporation

WSFS Financial Corporation is a savings and loan holding company. The Company’s subsidiary is Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), which is the bank and trust company. It operates in three segments: WSFS Bank, Cash Connect and Wealth Management. The WSFS Bank segment provides loans and other financial products to commercial and retail customers. Its Cash Connect segment provides automated teller machine (ATM) services through strategic partnerships with several of the network, manufacturers and service providers in the ATM industry. The Wealth Management segment provides a range of fiduciary, investment management, credit and deposit products to clients. Its banking business is commercial lending funded by customer-generated deposits. It also offers a range of consumer loan products, retail securities and insurance brokerage services. Its subsidiaries include WSFS Wealth Investments, 1832 Holdings, Inc., Monarch and West Capital Management.

About Porter Bancorp

Porter Bancorp, Inc. is a bank holding company. The Company operates through its subsidiary, PBI Bank (the Bank). The Bank is a community bank with a range of commercial and personal banking products. It offers retail and commercial deposit products. It offers drive-in banking facilities, automatic teller machines, night depository, personalized checks, credit cards, debit cards, Internet banking, mobile banking, treasury management services, remote deposit services, electronic funds transfers through automated clearing house services, domestic and foreign wire transfers, cash management, vault services, and loan and deposit sweep accounts. It operates banking offices in approximately 12 counties in Kentucky. Its markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt. It serves south central Kentucky and southern Kentucky from banking offices in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess Counties.

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