Financial Contrast: Coastal Banking (CBCO) versus WSFS Financial (WSFS)

Coastal Banking (OTCMKTS:CBCO) and WSFS Financial (NASDAQ:WSFS) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares Coastal Banking and WSFS Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coastal Banking N/A N/A N/A
WSFS Financial 23.83% 14.12% 1.52%

Earnings and Valuation

This table compares Coastal Banking and WSFS Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coastal Banking N/A N/A N/A N/A N/A
WSFS Financial $379.37 million 3.29 $50.24 million $2.56 15.55

WSFS Financial has higher revenue and earnings than Coastal Banking.

Institutional & Insider Ownership

5.6% of Coastal Banking shares are held by institutional investors. Comparatively, 85.1% of WSFS Financial shares are held by institutional investors. 14.4% of Coastal Banking shares are held by insiders. Comparatively, 4.9% of WSFS Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Coastal Banking and WSFS Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coastal Banking 0 0 0 0 N/A
WSFS Financial 0 1 5 0 2.83

WSFS Financial has a consensus price target of $59.20, indicating a potential upside of 48.74%. Given WSFS Financial’s higher possible upside, analysts plainly believe WSFS Financial is more favorable than Coastal Banking.

Dividends

WSFS Financial pays an annual dividend of $0.44 per share and has a dividend yield of 1.1%. Coastal Banking does not pay a dividend. WSFS Financial pays out 17.2% of its earnings in the form of a dividend. WSFS Financial has increased its dividend for 4 consecutive years.

Summary

WSFS Financial beats Coastal Banking on 9 of the 11 factors compared between the two stocks.

About Coastal Banking

Coastal Banking Company, Inc. is a bank holding company for CBC National Bank (the Bank). The Bank provides a range of commercial and consumer banking services to customers throughout Beaufort County, South Carolina and Nassau County, Florida. The Bank operates through three segments: community banking, SBA lending and mortgage banking operations. The Bank also has a residential mortgage banking division, which operates approximately 13 retail residential loan production offices. The Bank makes commercial, residential, construction, agricultural, agribusiness and consumer loans to customers in South Carolina, Florida and Georgia. The Company classifies its securities as available for sale or held to maturity. Held to maturity securities are those securities for which the Company has the ability and intent to hold until maturity. The Company’s primary source of funds for making loans and investments is its deposits, on which the Company pays interest.

About WSFS Financial

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. The company offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as jumbo certificates of deposit. It also provides a range of loans, which comprise residential real estate loans; commercial real estate mortgage loans; commercial construction loans to developers; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion, and other business purposes; and consumer credit products, such as home improvement, automobile, and other secured and unsecured personal installment loans, as well as home equity lines and unsecured lines of credit. In addition, the company offers cash management, trust, and wealth management services. Further, it markets various third-party investment and insurance products, such as single-premium annuities, whole life policies, and securities; and provides investment advisory services to high net worth individuals and institutions. Additionally, the company offers ATM vault cash and other related services; and online reporting and ATM cash management, predictive cash ordering, armored carrier management, and ATM processing and equipment sales and deposit safe cash logistics services. As of February 27, 2018, it operated 76 offices, including 46 in Delaware, 28 in Pennsylvania, 1 in Virginia, and 1 in Nevada. WSFS Financial Corporation was founded in 1832 and is headquartered in Wilmington, Delaware.

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