Financial Comparison: MSB Financial (NASDAQ:MSBF) and Western New England Bancorp (NASDAQ:WNEB)

MSB Financial (NASDAQ:MSBF) and Western New England Bancorp (NASDAQ:WNEB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider & Institutional Ownership

21.6% of MSB Financial shares are held by institutional investors. Comparatively, 52.4% of Western New England Bancorp shares are held by institutional investors. 7.5% of MSB Financial shares are held by insiders. Comparatively, 5.2% of Western New England Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Western New England Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. MSB Financial does not pay a dividend. Western New England Bancorp pays out 35.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for MSB Financial and Western New England Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MSB Financial 0 0 0 0 N/A
Western New England Bancorp 0 1 2 0 2.67

Western New England Bancorp has a consensus target price of $10.50, suggesting a potential upside of 7.03%. Given Western New England Bancorp’s higher probable upside, analysts plainly believe Western New England Bancorp is more favorable than MSB Financial.

Risk & Volatility

MSB Financial has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares MSB Financial and Western New England Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MSB Financial $24.15 million 3.66 $4.84 million N/A N/A
Western New England Bancorp $88.22 million 2.96 $16.41 million $0.56 17.52

Western New England Bancorp has higher revenue and earnings than MSB Financial.

Profitability

This table compares MSB Financial and Western New England Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MSB Financial 17.06% 6.38% 0.74%
Western New England Bancorp 16.17% 6.16% 0.68%

Summary

MSB Financial beats Western New England Bancorp on 8 of the 14 factors compared between the two stocks.

About MSB Financial

MSB Financial Corp. operates as the bank holding company for Millington Bank that provides various banking products and services in New Jersey. The company offers deposit products, including checking accounts; savings accounts, such as regular passbook, statement, money market, and club accounts, as well as six-level tiered savings accounts; certificates of deposit; and fixed or variable rate individual retirement accounts. Its loan portfolio comprises one-to four-family real estate mortgage loans, commercial and multi-family real estate mortgage loans, construction loans, commercial and industrial loans, and home equity loans and lines of credit, as well as consumer loans consisting of new and used automobile loans, secured and unsecured personal loans, account loans, and overdraft lines of credit. The company was founded in 1911 and is based in Millington, New Jersey.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including checking, savings, business and municipal savings, money market and business sweep, and individual retirement accounts; time deposits; term certificates of deposit; and interest on lawyers trust accounts. It also offers commercial real estate loans secured by one-to-four and multi-family apartment buildings, office, industrial, or mixed-use facilities, or other commercial properties; commercial construction loans; commercial and industrial loans, such as revolving lines of credit, working capital loans, equipment financing and term loans; residential real estate loans secured by one-to-four family residential properties; home equity loans; and consumer loans. In addition, the company provides automated teller machines (ATM), telephone and online banking, remote deposit capture, cash management services, overdraft facilities, night deposit services, and safe deposit facilities. It operates a network of 22 banking offices, 24 free-standing ATMs, and 24 seasonal or temporary ATMS located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Granby and Enfield, Connecticut. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. Western New England Bancorp, Inc. was founded in 1853 and is headquartered in Westfield, Massachusetts.

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