BankUnited (BKU) & WSFS Financial Corporation (WSFS) Head to Head Contrast

WSFS Financial Corporation (NASDAQ: WSFS) and BankUnited (NYSE:BKU) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for WSFS Financial Corporation and BankUnited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSFS Financial Corporation 0 0 2 0 3.00
BankUnited 0 3 7 0 2.70

WSFS Financial Corporation presently has a consensus price target of $52.50, indicating a potential upside of 16.67%. BankUnited has a consensus price target of $39.27, indicating a potential upside of 15.68%. Given WSFS Financial Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe WSFS Financial Corporation is more favorable than BankUnited.

Insider and Institutional Ownership

78.3% of WSFS Financial Corporation shares are owned by institutional investors. Comparatively, 99.4% of BankUnited shares are owned by institutional investors. 4.9% of WSFS Financial Corporation shares are owned by company insiders. Comparatively, 5.1% of BankUnited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

WSFS Financial Corporation has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, BankUnited has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
WSFS Financial Corporation 20.09% 10.14% 1.04%
BankUnited 19.38% 9.66% 0.85%

Dividends

WSFS Financial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. BankUnited pays an annual dividend of $0.84 per share and has a dividend yield of 2.5%. WSFS Financial Corporation pays out 13.1% of its earnings in the form of a dividend. BankUnited pays out 39.1% 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.

Valuation & Earnings

This table compares WSFS Financial Corporation and BankUnited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WSFS Financial Corporation $293.90 million 4.82 $67.31 million $2.14 21.03
BankUnited $946.20 million 3.83 $229.68 million $2.15 15.79

BankUnited has higher revenue and earnings than WSFS Financial Corporation. BankUnited 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.

Summary

WSFS Financial Corporation beats BankUnited on 9 of the 16 factors compared between the two stocks.

WSFS Financial Corporation Company Profile

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.

BankUnited Company Profile

BankUnited, Inc. is the bank holding company of BankUnited (the Bank). The bank is a national banking association. As of December 31, 2016, the Bank provided a range of banking services to individual and corporate customers through 94 banking centers located in 15 Florida counties and six banking centers in the New York metropolitan area. The Bank also provides a range of traditional banking products and services to both its commercial and retail customers. The Company offers a range of lending products, including small business loans, commercial real estate loans, equipment loans and leases, term loans, formula-based loans, municipal and non-profit loans and leases, commercial and mortgage warehouse lines of credit, letters of credit and consumer loans. It offers traditional deposit products, including checking accounts, money market deposit accounts, savings accounts and certificates of deposit with a range of terms and rates.

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