United Community Financial (NASDAQ: UCFC) and Beneficial Bancorp (NASDAQ:BNCL) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Earnings & Valuation
This table compares United Community Financial and Beneficial Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United Community Financial||$118.75 million||4.85||$21.78 million||$0.57||20.23|
|Beneficial Bancorp||$226.63 million||5.58||$23.93 million||N/A||N/A|
Beneficial Bancorp has higher revenue and earnings than United Community Financial.
This is a summary of recent ratings and target prices for United Community Financial and Beneficial Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Community Financial||0||1||2||0||2.67|
United Community Financial presently has a consensus target price of $11.00, suggesting a potential downside of 4.60%. Beneficial Bancorp has a consensus target price of $17.00, suggesting a potential upside of 1.49%. Given Beneficial Bancorp’s higher possible upside, analysts clearly believe Beneficial Bancorp is more favorable than United Community Financial.
Insider and Institutional Ownership
59.6% of United Community Financial shares are owned by institutional investors. Comparatively, 71.8% of Beneficial Bancorp shares are owned by institutional investors. 4.2% of United Community Financial shares are owned by insiders. Comparatively, 5.5% of Beneficial Bancorp shares are owned by 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.
Risk & Volatility
United Community Financial has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Beneficial Bancorp has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
This table compares United Community Financial and Beneficial Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Community Financial||23.20%||11.04%||1.23%|
United Community Financial pays an annual dividend of $0.24 per share and has a dividend yield of 2.1%. Beneficial Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. United Community Financial pays out 42.1% of its earnings in the form of a dividend.
Beneficial Bancorp beats United Community Financial on 9 of the 15 factors compared between the two stocks.
About United Community Financial
United Community Financial Corp. operates as the holding company for Home Savings Bank that provides consumer and business banking services. The company offers various deposit instruments, including checking accounts, regular savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It provides commercial loans, such as multifamily loans; nonresidential real estate loans comprising retail centers, office buildings, and industrial buildings; land loans; loans for the construction of multifamily properties, nonresidential real estate projects, and to builders; and secured and unsecured loans, including traditional lines of credit, revolving lines of credit, and term loans. The company also offers residential mortgage loans consisting of one-to four-family loans; loans for the construction of one-to four-family residences; and consumer loans, such as home equity loans, home equity lines of credit, recreational vehicle loans, unsecured loans, and cash-secured loans. In addition, it provides insurance products for business and residential customers, including auto, homeowners, life-health, commercial, surety bonds, and aviation. The company offers services through its main office located in Youngstown, Ohio; and 35 retail banking offices, 3 wealth management offices, and 13 residential mortgage loan centers located in Ohio, Western Pennsylvania, and West Virginia. United Community Financial Corp. was founded in 1889 and is based in Youngstown, Ohio.
About Beneficial Bancorp
Beneficial Bancorp, Inc., together with its subsidiaries, provides consumer and commercial banking services to individuals, businesses, and nonprofit organizations in Philadelphia and Southern New Jersey area. The company accepts various deposit products, including non-interest bearing demand deposits, such as individual checking accounts; interest-bearing demand accounts comprising NOW, municipal, and money market accounts; savings accounts; certificates of deposit; and commercial checking accounts, as well as checking accounts primarily for small businesses. It also provides cash management services that include remote deposit, lockbox service, and sweep accounts; and certificate of deposit account registry service and brokered certificates of deposit. In addition, the company offers a portfolio of commercial loans and leases, which comprises business loans, small business leases, commercial real estate loans, and commercial construction loans; residential loans, including one- to four-family residential real estate loans; and consumer personal loans, such as home equity loans and lines of credit, automobile loans, personal loans, recreational vehicles, and educational loans. Further, it provides insurance brokerage and wealth management services; and property, casualty, life, and health and benefits insurance services. Additionally, the company holds title to various securities and other investments; holds and manages other real estate owned properties. The company was founded in 1853 and is headquartered in Philadelphia, Pennsylvania.
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