WSFS Financial Corporation (NASDAQ: WSFS) and Meta Financial Group (NASDAQ:CASH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for WSFS Financial Corporation and Meta Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSFS Financial Corporation 0 0 3 0 3.00
Meta Financial Group 0 1 1 0 2.50

WSFS Financial Corporation presently has a consensus price target of $51.33, indicating a potential upside of 18.55%. Meta Financial Group has a consensus price target of $108.00, indicating a potential upside of 52.54%. Given Meta Financial Group’s higher probable upside, analysts clearly believe Meta Financial Group is more favorable than WSFS Financial Corporation.

Volatility and Risk

WSFS Financial Corporation has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Meta Financial Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Valuation and Earnings

This table compares WSFS Financial Corporation and Meta Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WSFS Financial Corporation $307.38 million 4.43 $69.15 million $2.20 19.68
Meta Financial Group $238.92 million 2.77 $49.55 million $5.30 13.36

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

Insider & Institutional Ownership

78.3% of WSFS Financial Corporation shares are owned by institutional investors. Comparatively, 74.1% of Meta Financial Group shares are owned by institutional investors. 4.9% of WSFS Financial Corporation shares are owned by company insiders. Comparatively, 6.1% of Meta Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares WSFS Financial Corporation and Meta Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WSFS Financial Corporation 19.96% 10.44% 1.08%
Meta Financial Group 18.74% 16.60% 1.58%

Dividends

WSFS Financial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Meta Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.7%. WSFS Financial Corporation pays out 12.7% of its earnings in the form of a dividend. Meta Financial Group pays out 9.8% 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. Meta Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

WSFS Financial Corporation beats Meta Financial Group on 9 of the 16 factors compared between the two stocks.

WSFS Financial Corporation Company Profile

WSFS Financial Corporation is a savings and loan holding company. The Company’s subsidiary is Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), which is the bank and trust company. It operates in three segments: WSFS Bank, Cash Connect and Wealth Management. The WSFS Bank segment provides loans and other financial products to commercial and retail customers. Its Cash Connect segment provides automated teller machine (ATM) services through strategic partnerships with several of the network, manufacturers and service providers in the ATM industry. The Wealth Management segment provides a range of fiduciary, investment management, credit and deposit products to clients. Its banking business is commercial lending funded by customer-generated deposits. It also offers a range of consumer loan products, retail securities and insurance brokerage services. Its subsidiaries include WSFS Wealth Investments, 1832 Holdings, Inc., Monarch and West Capital Management.

Meta Financial Group Company Profile

Meta Financial Group, Inc. is a unitary savings and loan holding company. The Company operates through its banking subsidiary, MetaBank (the Bank). Its segments include Payments, Banking, and Corporate Services/Other. MetaBank is both a community-oriented financial institution offering a range of financial services to meet the needs of the communities it serves and a payments company providing services on a nationwide basis. It operates in both the banking and payments industries through MetaBank, its retail banking operation; Meta Payment Systems (MPS), its electronic payments division; AFS/IBEX Financial Services Inc. (AFS/IBEX), its insurance premium financing division, and Refund Advantage, EPS Financial, LLC (EPS) Financial and Specialty Consumer Services, its tax-related financial solutions divisions.

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