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

Volatility and Risk

Porter Bancorp has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, WSFS Financial Corporation has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

17.9% of Porter Bancorp shares are owned by institutional investors. Comparatively, 78.4% of WSFS Financial Corporation shares are owned by institutional investors. 28.7% of Porter Bancorp shares are owned by insiders. Comparatively, 4.9% of WSFS Financial Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Porter Bancorp and WSFS Financial Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Porter Bancorp $35.80 million 1.95 -$2.01 million ($0.33) -34.70
WSFS Financial Corporation $307.38 million 5.12 $69.12 million $2.20 22.75

WSFS Financial Corporation has higher revenue and earnings than Porter Bancorp. Porter Bancorp 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.

Dividends

WSFS Financial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Porter Bancorp does not pay a dividend. WSFS Financial Corporation pays out 12.7% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Porter Bancorp -4.59% -5.33% -0.20%
WSFS Financial Corporation 19.96% 10.44% 1.08%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Porter Bancorp and WSFS Financial Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Porter Bancorp 0 0 0 0 N/A
WSFS Financial Corporation 0 0 3 0 3.00

WSFS Financial Corporation has a consensus target price of $51.33, suggesting a potential upside of 2.56%. Given WSFS Financial Corporation’s higher probable upside, analysts clearly believe WSFS Financial Corporation is more favorable than Porter Bancorp.

Summary

WSFS Financial Corporation beats Porter Bancorp on 11 of the 14 factors compared between the two stocks.

About Porter Bancorp

Porter Bancorp, Inc. is a bank holding company. The Company operates through its subsidiary, PBI Bank (the Bank). The Bank is a community bank with a range of commercial and personal banking products. It offers retail and commercial deposit products. It offers drive-in banking facilities, automatic teller machines, night depository, personalized checks, credit cards, debit cards, Internet banking, mobile banking, treasury management services, remote deposit services, electronic funds transfers through automated clearing house services, domestic and foreign wire transfers, cash management, vault services, and loan and deposit sweep accounts. It operates banking offices in approximately 12 counties in Kentucky. Its markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt. It serves south central Kentucky and southern Kentucky from banking offices in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess Counties.

About WSFS Financial Corporation

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.

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