Analyzing ESSA Bancorp (ESSA) and First Connecticut Bancorp (FBNK)

ESSA Bancorp (NASDAQ:ESSA) and First Connecticut Bancorp (NASDAQ:FBNK) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation and Earnings

This table compares ESSA Bancorp and First Connecticut Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ESSA Bancorp $72.32 million 2.64 $6.53 million N/A N/A
First Connecticut Bancorp N/A N/A N/A N/A N/A

ESSA Bancorp has higher revenue and earnings than First Connecticut Bancorp.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ESSA Bancorp and First Connecticut Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESSA Bancorp 0 0 0 0 N/A
First Connecticut Bancorp 0 0 2 0 3.00

Profitability

This table compares ESSA Bancorp and First Connecticut Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESSA Bancorp 9.03% 3.64% 0.36%
First Connecticut Bancorp N/A N/A N/A

Dividends

ESSA Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. First Connecticut Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 2.3%. First Connecticut Bancorp has raised its dividend for 4 consecutive years. First Connecticut Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

43.3% of ESSA Bancorp shares are owned by institutional investors. Comparatively, 48.1% of First Connecticut Bancorp shares are owned by institutional investors. 8.8% of ESSA Bancorp shares are owned by insiders. Comparatively, 25.4% of First Connecticut Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

First Connecticut Bancorp beats ESSA Bancorp on 5 of the 9 factors compared between the two stocks.

ESSA Bancorp Company Profile

ESSA Bancorp, Inc. operates as the holding company for ESSA Bank & Trust that provides a range of financial services to individuals, families, and businesses in Pennsylvania. Its deposit products include savings accounts, interest bearing demand accounts, checking accounts, money market accounts, club accounts, certificates of deposit and IRAs, and other qualified plan accounts, as well as commercial checking accounts for businesses. The company's loan portfolio comprises first mortgage loans for the purchase, construction, or refinancing of one- to four-family residential real estate property; commercial real estate loans; home equity loans and lines of credit; and commercial and consumer loans, including indirect auto loans, as well as loans secured by deposits and personal unsecured loans. In addition, it offers insurance benefits consulting services, such as health insurance, life insurance, short term and long term disability, dental, vision, 401(K) retirement planning, and individual health products, as well as asset management and trust, and investment services. As of September 30, 2017, the company operated 25 full-service banking offices, including 10 offices in Monroe County, 3 offices in Lehigh County, 6 offices in Northampton County, 1 office in Lackawanna County, 1 office in Luzerne County, 1 office in Chester County, 2 offices in Delaware County, and 1 office in Montgomery County, Pennsylvania. ESSA Bancorp, Inc. was founded in 1916 and is based in Stroudsburg, Pennsylvania.

First Connecticut Bancorp Company Profile

First Connecticut Bancorp, Inc. operates as the holding company for Farmington Bank that provides various consumer and commercial banking services to businesses and individuals in the United States. The company offers various deposit instruments, including checking, savings, money market savings, and negotiable order of withdrawal accounts, as well as fixed-rate time deposits. It also provides one-to-four family residential real estate loans; commercial real estate loans; construction loans, such as commercial construction loans and real estate subdivision development loans to developers, licensed contractors, and builders for the construction and development of commercial real estate projects and residential properties, as well as loans to individuals and contractors for the construction and acquisition of personal residences; and commercial loans comprising term loans, revolving lines of credit for working capital needs, equipment lines of credit to facilitate the purchase of equipment, and letters of credit. In addition, the company offers home equity loans and home equity lines of credit secured by owner-occupied one-to-four family residences; and installment and collateral consumer loans on new and used automobiles, loans collateralized by deposit accounts, and unsecured personal loans, as well as demand, revolving credit, and resort loans. Further, it provides wealth management and ATM services. As of February 27, 2018, the company operated 24 branch locations in central Connecticut and western Massachusetts. First Connecticut Bancorp, Inc. was founded in 1851 and is based in Farmington, Connecticut.

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