Analyzing Wintrust Financial (WTFC) and Eastern Virginia Bankshares (EVBS)

Wintrust Financial (NASDAQ: WTFC) and Eastern Virginia Bankshares (NASDAQ:EVBS) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Valuation & Earnings

This table compares Wintrust Financial and Eastern Virginia Bankshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wintrust Financial $1.27 billion 3.62 $257.68 million $4.40 18.60
Eastern Virginia Bankshares N/A N/A N/A $0.31 N/A

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

Insider & Institutional Ownership

90.8% of Wintrust Financial shares are owned by institutional investors. Comparatively, 44.2% of Eastern Virginia Bankshares shares are owned by institutional investors. 2.0% of Wintrust Financial shares are owned by insiders. Comparatively, 4.8% of Eastern Virginia Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Wintrust Financial pays an annual dividend of $0.76 per share and has a dividend yield of 0.9%. Eastern Virginia Bankshares pays an annual dividend of $0.12 per share. Wintrust Financial pays out 17.3% of its earnings in the form of a dividend. Eastern Virginia Bankshares pays out 38.7% 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. Wintrust Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Wintrust Financial and Eastern Virginia Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wintrust Financial 0 6 4 0 2.40
Eastern Virginia Bankshares 0 1 0 0 2.00

Wintrust Financial presently has a consensus price target of $88.25, indicating a potential upside of 7.85%. Eastern Virginia Bankshares has a consensus price target of $11.00, indicating a potential upside of Infinity. Given Eastern Virginia Bankshares’ higher probable upside, analysts plainly believe Eastern Virginia Bankshares is more favorable than Wintrust Financial.

Profitability

This table compares Wintrust Financial and Eastern Virginia Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wintrust Financial 20.35% 9.49% 0.95%
Eastern Virginia Bankshares 13.18% 4.20% 0.50%

Summary

Wintrust Financial beats Eastern Virginia Bankshares on 10 of the 13 factors compared between the two stocks.

Wintrust Financial Company Profile

Wintrust Financial Corporation is a financial holding company. The Company conducts its businesses through three segments: community banking, specialty finance and wealth management. The Company offers community banking services to individuals, small to mid-sized businesses, local governmental units and institutional clients. Through specialty finance segment, the Company offers financing of insurance premiums for businesses and individuals; accounts receivable financing, value-added, out-sourced administrative services, and other specialty finance businesses. The Company offers a range of wealth management services through its subsidiaries, including trust and investment services, asset management and securities brokerage services. The Company offers MaxSafe deposit accounts, which provide customers with expanded Federal Deposit Insurance Corporation (FDIC) insurance coverage by spreading a customer’s deposit across its banks.

Eastern Virginia Bankshares Company Profile

Eastern Virginia Bankshares, Inc. is a bank holding company. The Company operates through its bank subsidiary, EVB (the Bank). EVB is a community bank focusing on small to medium-sized businesses and consumers in its coastal plain markets and the emerging suburbs outside of the Richmond, Tidewater, and southern Virginia areas. The Company provides general commercial financial services to customers located in the geographic areas of its retail branch network. It provides a range of personal and commercial banking services, including commercial, consumer and real estate loans. Its investment securities include agency residential mortgage-backed securities, agency commercial mortgage-backed securities, and state and political subdivisions. The Company offers a range of retail and commercial deposit products and fee-based services. Its deposits include demand deposits, savings and money market accounts, and time deposits.

Receive News & Ratings for Wintrust Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wintrust Financial and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit