Reviewing Western New England Bancorp (NASDAQ:WNEB) and Hang Seng Bank (OTCMKTS:HSNGY)

Hang Seng Bank (OTCMKTS:HSNGY) and Western New England Bancorp (NASDAQ:WNEB) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Volatility & Risk

Hang Seng Bank has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Hang Seng Bank and Western New England Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hang Seng Bank	N/A	N/A	N/A
Western New England Bancorp	11.64%	6.31%	0.56%

Valuation & Earnings

This table compares Hang Seng Bank and Western New England Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hang Seng Bank	$8.63 billion	4.27	$2.36 billion	N/A	N/A
Western New England Bancorp	$131.13 million	1.92	$15.27 million	$0.76	16.37

Hang Seng Bank has higher revenue and earnings than Western New England Bancorp.

Dividends

Hang Seng Bank pays an annual dividend of $0.58 per share and has a dividend yield of 2.9%. Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. Western New England Bancorp pays out 36.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for Hang Seng Bank and Western New England Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hang Seng Bank	1	1	0	0	1.50
Western New England Bancorp	0	1	1	1	3.00

Western New England Bancorp has a consensus price target of $14.00, suggesting a potential upside of 12.54%. Given Western New England Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Western New England Bancorp is more favorable than Hang Seng Bank.

Institutional & Insider Ownership

68.0% of Western New England Bancorp shares are held by institutional investors. 0.2% of Hang Seng Bank shares are held by insiders. Comparatively, 6.1% of Western New England Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Western New England Bancorp beats Hang Seng Bank on 10 of the 15 factors compared between the two stocks.

About Hang Seng Bank

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprises, and institutional customers in Hong Kong, the Mainland of China, and internationally. It operates through five segments: Wealth and Personal Banking, Commercial Banking, Global Banking, Global Markets, and Other. The company offers personal banking services, including current and savings accounts, time deposits, mortgages and personal loans, credit cards, and insurance, investment, and other wealth management services, as well as consumer lending and wealth management services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment services, and corporate wealth management services; general banking and transaction banking, corporate lending, deposits, and cash management services; and tailored solutions and services in foreign exchange, bullion, equities, fixed income, and securities financing, as well as manages the funding and liquidity position activities. In addition, the company offers retirement benefits, life assurance, fund management, and stock broking services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates service outlets in Hong Kong; branches in Macau and Singapore; and representative office in Taipei, as well as a network of outlets in the Mainland of China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited operates as a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.