WSFS Financial (NASDAQ: WSFS) and Ellington Financial (NYSE:EFC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
This is a summary of current ratings and recommmendations for WSFS Financial and Ellington Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings and Valuation
This table compares WSFS Financial and Ellington Financial’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WSFS Financial||$379.37 million||4.19||$59.55 million||$1.85||27.38|
|Ellington Financial||$93.96 million||4.95||$33.98 million||$1.05||14.09|
WSFS Financial has higher revenue and earnings than Ellington Financial. Ellington Financial is trading at a lower price-to-earnings ratio than WSFS Financial, indicating that it is currently the more affordable of the two stocks.
WSFS Financial pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Ellington Financial pays an annual dividend of $1.64 per share and has a dividend yield of 11.1%. WSFS Financial pays out 19.5% of its earnings in the form of a dividend. Ellington Financial pays out 156.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
WSFS Financial has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Ellington Financial has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.
This table compares WSFS Financial and Ellington Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
79.2% of WSFS Financial shares are owned by institutional investors. Comparatively, 45.4% of Ellington Financial shares are owned by institutional investors. 4.9% of WSFS Financial shares are owned by company insiders. Comparatively, 10.6% of Ellington Financial shares are owned by company 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.
WSFS Financial 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.
Ellington Financial Company Profile
Ellington Financial LLC is a specialty finance company that acquires and manages mortgage-related and other financial assets. The Company’s targeted assets include residential mortgage-backed securities (RMBS), backed by loans for which the principal and interest payments are not guaranteed by a United States Government agency or a United States Government-sponsored entity, collectively referred to as non-Agency RMBS; RMBS for which the principal and interest payments are guaranteed by the United States government agency or the United States government-sponsored entity (Agency RMBS); consumer loans and asset-backed securities (ABS) backed by consumer loans; commercial mortgage-backed securities (CMBS) commercial mortgage loans and other commercial real estate debt; residential mortgage loans; collateralized loan obligations (CLOs); corporate debt and equity, including distressed debt and equity, and mortgage-related derivatives.
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