Winland Electronics (OTCMKTS:WELX) vs. ChoiceOne Financial Services (NASDAQ:COFS) Financial Comparison

ChoiceOne Financial Services (NASDAQ:COFS) and Winland Electronics (OTCMKTS:WELX) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares ChoiceOne Financial Services and Winland Electronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChoiceOne Financial Services	$227.62 million	2.00	$28.18 million	$1.50	20.22
Winland Electronics	$4.98 million	2.56	$5.91 million	$1.13	2.22

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

Profitability

This table compares ChoiceOne Financial Services and Winland Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChoiceOne Financial Services	12.38%	11.81%	1.20%
Winland Electronics	N/A	N/A	N/A

Risk & Volatility

ChoiceOne Financial Services has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Winland Electronics has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for ChoiceOne Financial Services and Winland Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChoiceOne Financial Services	0	3	2	0	2.40
Winland Electronics	0	0	0	0	0.00

ChoiceOne Financial Services presently has a consensus price target of $35.50, indicating a potential upside of 17.05%. Given ChoiceOne Financial Services’ stronger consensus rating and higher probable upside, analysts clearly believe ChoiceOne Financial Services is more favorable than Winland Electronics.

Insider & Institutional Ownership

19.9% of ChoiceOne Financial Services shares are owned by institutional investors. 5.9% of ChoiceOne Financial Services shares are owned by insiders. Comparatively, 8.1% of Winland Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

ChoiceOne Financial Services beats Winland Electronics on 11 of the 14 factors compared between the two stocks.

About ChoiceOne Financial Services

ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial lending products, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers alternative investment products, which include annuities and mutual funds; and sells insurance policies, such as life and health for commercial and consumer clients. Further, it provides trust and wealth management services. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.