Head-To-Head Survey: Provident Financial Services (NYSE:PFS) versus WSFS Financial (NASDAQ:WSFS)

WSFS Financial (NASDAQ:WSFS) and Provident Financial Services (NYSE:PFS) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares WSFS Financial and Provident Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WSFS Financial	$1.40 billion	2.23	$263.67 million	$4.85	11.80
Provident Financial Services	$850.59 million	3.16	$115.53 million	$1.96	10.48

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

Dividends

WSFS Financial pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.7%. WSFS Financial pays out 14.0% of its earnings in the form of a dividend. Provident Financial Services pays out 49.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. WSFS Financial has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

88.5% of WSFS Financial shares are owned by institutional investors. Comparatively, 72.0% of Provident Financial Services shares are owned by institutional investors. 1.2% of WSFS Financial shares are owned by company insiders. Comparatively, 3.1% of Provident Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares WSFS Financial and Provident Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WSFS Financial	20.44%	10.60%	1.36%
Provident Financial Services	18.76%	9.62%	1.06%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WSFS Financial and Provident Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WSFS Financial	0	3	4	0	2.57
Provident Financial Services	0	3	3	1	2.71

WSFS Financial presently has a consensus target price of $65.40, suggesting a potential upside of 14.31%. Provident Financial Services has a consensus target price of $22.70, suggesting a potential upside of 10.46%. Given WSFS Financial’s higher possible upside, equities analysts clearly believe WSFS Financial is more favorable than Provident Financial Services.

Volatility and Risk

WSFS Financial has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Provident Financial Services has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Summary

WSFS Financial beats Provident Financial Services on 12 of the 18 factors compared between the two stocks.

About WSFS Financial

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. It offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as accepts jumbo certificates of deposit from individuals, businesses, and municipalities. The company also provides a range of loans, which comprise fixed and adjustable rate residential loans; commercial mortgage and commercial loans; commercial construction loans; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion and other business purposes; and consumer credit products, such as home equity loans, home equity lines of credit, automobile loans, unsecured lines of credit, and other secured and unsecured personal installment loans. In addition, it offers insurance products; planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients; retail securities and insurance brokerage services; mortgage and title services; residential mortgage and refinancing solutions; and leases small equipment and fixed assets, as well as provides financial planning, customized investment strategies, brokerage products, fiduciary, and wealth management services. Further, the company provides ATM vault cash, smart safe, and other cash logistics services; and online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, and deposit safe cash logistics services, as well as trustee, agency, bankruptcy administration, custodial and commercial domicile services. The company was founded in 1832 and is based in Wilmington, Delaware.

About Provident Financial Services

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.