WSFS Financial (NASDAQ:WSFS) vs. Northeast Indiana Bancorp (OTCMKTS:NIDB) Financial Comparison

WSFS Financial (NASDAQ:WSFS) and Northeast Indiana Bancorp (OTCMKTS:NIDB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

WSFS Financial has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Northeast Indiana Bancorp has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Profitability

This table compares WSFS Financial and Northeast Indiana Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WSFS Financial	20.44%	10.60%	1.36%
Northeast Indiana Bancorp	16.57%	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for WSFS Financial and Northeast Indiana Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WSFS Financial	0	3	4	0	2.57
Northeast Indiana Bancorp	0	0	0	0	0.00

WSFS Financial presently has a consensus target price of $65.40, indicating a potential upside of 14.52%. Given WSFS Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe WSFS Financial is more favorable than Northeast Indiana Bancorp.

Valuation & Earnings

This table compares WSFS Financial and Northeast Indiana Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WSFS Financial	$1.40 billion	2.22	$263.67 million	$4.85	11.78
Northeast Indiana Bancorp	$31.80 million	1.51	$4.31 million	$2.30	8.83

WSFS Financial has higher revenue and earnings than Northeast Indiana Bancorp. Northeast Indiana Bancorp is trading at a lower price-to-earnings ratio than WSFS Financial, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

88.5% of WSFS Financial shares are held by institutional investors. 1.1% of WSFS Financial shares are held by company insiders. Comparatively, 19.8% of Northeast Indiana Bancorp shares are held 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.

Dividends

WSFS Financial pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Northeast Indiana Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 3.7%. WSFS Financial pays out 14.0% of its earnings in the form of a dividend. Northeast Indiana Bancorp pays out 33.0% 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. WSFS Financial has raised its dividend for 1 consecutive years.

Summary

WSFS Financial beats Northeast Indiana Bancorp on 15 of the 17 factors compared between the two stocks.

About WSFS Financial

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. It offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as accepts jumbo certificates of deposit from individuals, businesses, and municipalities. The company also provides a range of loans, which comprise fixed and adjustable rate residential loans; commercial mortgage and commercial loans; commercial construction loans; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion and other business purposes; and consumer credit products, such as home equity loans, home equity lines of credit, automobile loans, unsecured lines of credit, and other secured and unsecured personal installment loans. In addition, it offers insurance products; planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients; retail securities and insurance brokerage services; mortgage and title services; residential mortgage and refinancing solutions; and leases small equipment and fixed assets, as well as provides financial planning, customized investment strategies, brokerage products, fiduciary, and wealth management services. Further, the company provides ATM vault cash, smart safe, and other cash logistics services; and online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, and deposit safe cash logistics services, as well as trustee, agency, bankruptcy administration, custodial and commercial domicile services. The company was founded in 1832 and is based in Wilmington, Delaware.

About Northeast Indiana Bancorp

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. The company offers checking accounts, savings accounts, retirement accounts, health savings accounts, and direct deposits, as well as certificates of deposit. It also provides mortgage, refinance, new construction, and home equity loans; auto, recreational vehicle, and unsecured loans; and revolving lines of credit, term loans, real estate loans, letter of credit, and small business administration loans, as well as debit and credit cards. In addition, the company offers merchant, online banking, and cash management services. It operates through full-service locations in Huntington, Warsaw, and Fort Wayne, Indiana. The company was founded in 1912 and is headquartered in Huntington, Indiana.