Salisbury Bancorp (NASDAQ:SAL) and WCF Bancorp (OTCMKTS:WCFB) Critical Review

Salisbury Bancorp (NASDAQ:SALGet Rating) and WCF Bancorp (OTCMKTS:WCFBGet Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Valuation & Earnings

This table compares Salisbury Bancorp 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
Salisbury Bancorp $55.57 million 2.59 $16.47 million $5.38 9.29
WCF Bancorp N/A N/A N/A N/A N/A

Salisbury Bancorp has higher revenue and earnings than WCF Bancorp.

Profitability

This table compares Salisbury Bancorp and WCF Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Salisbury Bancorp 27.34% 11.40% 1.03%
WCF Bancorp N/A N/A N/A

Dividends

Salisbury Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.5%. Salisbury Bancorp pays out 23.8% of its earnings in the form of a dividend. Salisbury Bancorp has raised its dividend for 3 consecutive years. Salisbury Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

23.1% of Salisbury Bancorp shares are held by institutional investors. 8.8% of Salisbury Bancorp shares are held by company insiders. Comparatively, 0.8% of WCF Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Salisbury Bancorp has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, WCF Bancorp has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Salisbury Bancorp and WCF Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salisbury Bancorp 0 0 0 0 N/A
WCF Bancorp 0 0 0 0 N/A

Summary

Salisbury Bancorp beats WCF Bancorp on 9 of the 10 factors compared between the two stocks.

Salisbury Bancorp Company Profile (Get Rating)

Salisbury Bancorp, Inc. operates as the bank holding company for Salisbury Bank and Trust Company that provides commercial banking, consumer financing, retail banking, and trust and wealth advisory services. It offers various retail and commercial deposit products. The company also provides loans, such as residential and commercial real estate loans; construction loans; working capital loans; equipment loans; and consumer loans, including home equity loans and lines of credit, collateral loans, and auto and personal installment loans. In addition, it offers a range of fiduciary services, including trust and estate administration, wealth advisory, and investment management services to individuals, families, businesses, and institutions. Further, the company provides additional depositor related services consisting of landlord/tenant lease security accounts and services, merchant services, payroll services, ATM services, bank-by-phone services, Internet banking services, Internet bill pay services, person to person payments, bank to bank transfers, mobile banking services with remote deposit, and online financial management with account aggregation services, as well as cash management services, including remote deposit capture, ACH origination, wire transfers, and positive pay services. It operates through a network of 14 banking offices and 10 ATMs located in Litchfield County, Connecticut; Dutchess, Orange, and Ulster Counties, New York; and Berkshire County, Massachusetts. The company was founded in 1848 and is headquartered in Lakeville, Connecticut.

WCF Bancorp Company Profile (Get Rating)

WCF Bancorp, Inc. operates as the bank holding company for WCF Financial Bank that provides commercial banking products and services to individuals and businesses. The company offers checking and saving accounts; certificates of deposit; consumer and mortgage loans; debit and credit cards; safe deposit boxes and safe bonds; order checks; and other products. The company was founded in 1934 and is based in Webster City, Iowa.

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