Head to Head Analysis: Provident Financial (NASDAQ:PROV) & WCF Bancorp (NASDAQ:WCFB)

WCF Bancorp (NASDAQ:WCFB) and Provident Financial (NASDAQ:PROV) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Risk and Volatility

WCF Bancorp has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
WCF Bancorp -1.40% -0.24% -0.05%
Provident Financial 9.64% 4.24% 0.46%

Insider and Institutional Ownership

21.3% of WCF Bancorp shares are owned by institutional investors. Comparatively, 59.4% of Provident Financial shares are owned by institutional investors. 0.8% of WCF Bancorp shares are owned by company insiders. Comparatively, 14.4% of Provident Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.3%. Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. Provident Financial pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares WCF Bancorp and Provident Financial’s 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 4.24 $230,000.00 N/A N/A
Provident Financial $56.89 million 2.88 $4.42 million $0.58 37.62

Provident Financial has higher revenue and earnings than WCF Bancorp.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WCF Bancorp 0 0 0 0 N/A
Provident Financial 0 1 1 0 2.50

Provident Financial has a consensus price target of $22.00, suggesting a potential upside of 0.82%. Given Provident Financial’s higher probable upside, analysts plainly believe Provident Financial is more favorable than WCF Bancorp.

Summary

Provident Financial beats WCF Bancorp on 11 of the 13 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.

Provident Financial Company Profile

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. It operates through two segments, Provident Bank and Provident Bank Mortgage. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. It also originates, purchases, and sells single-family mortgage loans, including second mortgages and equity lines of credit. In addition, the company offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 13 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.

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