Critical Comparison: E*TRADE Financial (ETFC) vs. WCF Bancorp (WCFB)

E*TRADE Financial (NASDAQ:ETFC) and WCF Bancorp (NASDAQ:WCFB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Insider & Institutional Ownership

93.9% of E*TRADE Financial shares are held by institutional investors. Comparatively, 21.1% of WCF Bancorp shares are held by institutional investors. 0.2% of E*TRADE Financial shares are held by insiders. Comparatively, 0.6% of WCF Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares E*TRADE Financial and WCF Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
E*TRADE Financial $2.87 billion 4.25 $1.05 billion $3.89 12.81
WCF Bancorp $5.07 million 4.04 $230,000.00 N/A N/A

E*TRADE Financial has higher revenue and earnings than WCF Bancorp.

Profitability

This table compares E*TRADE Financial and WCF Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
E*TRADE Financial 36.62% 17.27% 1.63%
WCF Bancorp 4.67% 0.85% 0.18%

Dividends

E*TRADE Financial pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.5%. E*TRADE Financial pays out 14.4% of its earnings in the form of a dividend.

Volatility & Risk

E*TRADE Financial has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, WCF Bancorp has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for E*TRADE Financial and WCF Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
E*TRADE Financial 0 1 13 0 2.93
WCF Bancorp 0 0 0 0 N/A

E*TRADE Financial currently has a consensus price target of $61.31, suggesting a potential upside of 23.06%. Given E*TRADE Financial’s higher possible upside, analysts plainly believe E*TRADE Financial is more favorable than WCF Bancorp.

Summary

E*TRADE Financial beats WCF Bancorp on 10 of the 14 factors compared between the two stocks.

E*TRADE Financial Company Profile

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and registered investment advisors (RIAs). It also offers investor-focused banking products, primarily sweep deposits to customers; clearing and settlement services; Federal Deposit Insurance Corporation insurance services; custody solutions to RIAs; other banking and cash management services; software and services for managing equity compensation plans to its corporate clients; retail futures transaction services; and investment advisory services. The company provides its services to customers through digital platforms; and a network of industry-licensed customer service representatives and financial consultants through phone, email, and online at two national financial centers, as well as in-person at 30 regional financial centers in the United States. E*TRADE Financial Corporation was founded in 1982 and is headquartered in New York, New York.

WCF Bancorp Company Profile

WCF Bancorp, Inc. operates as the savings and loan holding company for WCF Financial Bank that various banking products and services. The company accepts deposit accounts, such as statement savings, money market, and NOW accounts; and certificates of deposit. Its loan products include one-to-four family residential real estate loans; non-owner occupied one-to-four family residential real estate loans; commercial real estate loans; and consumer loans comprising new and used automobile loans, home improvement and home equity loans, recreational vehicle loans, and loans secured by certificates of deposits. The company also invests in securities. It operates one full-service branch in Independence, Iowa. WCF Bancorp, Inc. is based in Webster City, Iowa.

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