WCF Bancorp (WCFB) & E*TRADE Financial (ETFC) Critical Analysis

WCF Bancorp (NASDAQ:WCFB) and E*TRADE Financial (NASDAQ:ETFC) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for WCF Bancorp and E*TRADE Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WCF Bancorp 0 0 0 0 N/A
E*TRADE Financial 0 1 13 0 2.93

E*TRADE Financial has a consensus price target of $61.31, suggesting a potential upside of 19.88%. Given E*TRADE Financial’s higher probable upside, analysts plainly believe E*TRADE Financial is more favorable than WCF Bancorp.

Volatility & Risk

WCF Bancorp has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, E*TRADE Financial has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Profitability

This table compares WCF Bancorp and E*TRADE Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WCF Bancorp 4.67% 0.85% 0.18%
E*TRADE Financial 36.62% 17.27% 1.63%

Institutional and Insider Ownership

21.1% of WCF Bancorp shares are owned by institutional investors. Comparatively, 93.9% of E*TRADE Financial shares are owned by institutional investors. 0.6% of WCF Bancorp shares are owned by insiders. Comparatively, 0.2% of E*TRADE Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.5%. E*TRADE Financial pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. E*TRADE Financial pays out 14.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares WCF Bancorp and E*TRADE Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WCF Bancorp $5.07 million 4.04 $230,000.00 N/A N/A
E*TRADE Financial $2.87 billion 4.36 $1.05 billion $3.89 13.15

E*TRADE Financial has higher revenue and earnings than WCF Bancorp.

Summary

E*TRADE Financial beats WCF Bancorp on 10 of the 14 factors compared between the two stocks.

WCF Bancorp Company Profile

WCF Bancorp, Inc. operates as the savings and loan holding company for WCF Financial Bank that various banking products and services. The company accepts deposit accounts, such as statement savings, money market, and NOW accounts; and certificates of deposit. Its loan products include one-to-four family residential real estate loans; non-owner occupied one-to-four family residential real estate loans; commercial real estate loans; and consumer loans comprising new and used automobile loans, home improvement and home equity loans, recreational vehicle loans, and loans secured by certificates of deposits. The company also invests in securities. It operates one full-service branch in Independence, Iowa. WCF Bancorp, Inc. is based in Webster City, Iowa.

E*TRADE Financial Company Profile

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and registered investment advisors (RIAs). It also offers investor-focused banking products, primarily sweep deposits to customers; clearing and settlement services; Federal Deposit Insurance Corporation insurance services; custody solutions to RIAs; other banking and cash management services; software and services for managing equity compensation plans to its corporate clients; retail futures transaction services; and investment advisory services. The company provides its services to customers through digital platforms; and a network of industry-licensed customer service representatives and financial consultants through phone, email, and online at two national financial centers, as well as in-person at 30 regional financial centers in the United States. E*TRADE Financial Corporation was founded in 1982 and is headquartered in New York, New York.

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