Simmons First National (NASDAQ: SFNC) and WSFS Financial (NASDAQ:WSFS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Valuation & Earnings
This table compares Simmons First National and WSFS Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Simmons First National||$533.77 million||4.87||$92.94 million||$1.71||16.49|
|WSFS Financial||$379.37 million||4.06||$50.24 million||$2.56||19.16|
Risk & Volatility
Simmons First National has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, WSFS Financial has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Simmons First National pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. WSFS Financial pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Simmons First National pays out 35.1% of its earnings in the form of a dividend. WSFS Financial pays out 14.1% 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.
Institutional and Insider Ownership
25.9% of Simmons First National shares are held by institutional investors. Comparatively, 80.1% of WSFS Financial shares are held by institutional investors. 2.8% of Simmons First National shares are held by company insiders. Comparatively, 5.7% of WSFS Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Simmons First National and WSFS Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simmons First National||0||3||2||0||2.40|
Simmons First National presently has a consensus price target of $31.63, suggesting a potential upside of 12.15%. WSFS Financial has a consensus price target of $56.20, suggesting a potential upside of 14.58%. Given WSFS Financial’s stronger consensus rating and higher possible upside, analysts plainly believe WSFS Financial is more favorable than Simmons First National.
This table compares Simmons First National and WSFS Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Simmons First National||17.41%||8.28%||1.13%|
WSFS Financial beats Simmons First National on 11 of the 16 factors compared between the two stocks.
Simmons First National Company Profile
Simmons First National Corporation operates as the holding company for Simmons Bank that provides financial products and services to individuals and businesses. It offers checking, savings, and time deposits; loan products, including consumer, real estate, commercial, agricultural, equipment, and SBA lending; personal and corporate trust services; credit cards; investment management products; insurance products; and securities and investment services. The company conducts banking operations through approximately 200 financial centers located in communities throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee, and Texas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.
WSFS Financial Company Profile
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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