Financial Survey: Meridian Bank (NASDAQ:MRBK) vs. WCF Bancorp (OTCMKTS:WCFB)

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

Risk and Volatility

WCF Bancorp has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Meridian Bank has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for WCF Bancorp and Meridian Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WCF Bancorp	0	0	0	0	0.00
Meridian Bank	0	0	3	0	3.00

Meridian Bank has a consensus target price of $22.00, suggesting a potential upside of 19.44%. Given Meridian Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Meridian Bank is more favorable than WCF Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WCF Bancorp	N/A	N/A	N/A
Meridian Bank	11.68%	12.81%	0.95%

Institutional & Insider Ownership

58.6% of Meridian Bank shares are held by institutional investors. 0.8% of WCF Bancorp shares are held by insiders. Comparatively, 14.4% of Meridian Bank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares WCF Bancorp and Meridian Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WCF Bancorp	$12.05 million	0.98	-$40,000.00	N/A	N/A
Meridian Bank	$205.49 million	1.06	$21.84 million	$1.89	9.75

Meridian Bank has higher revenue and earnings than WCF Bancorp.

Summary

Meridian Bank beats WCF Bancorp on 12 of the 12 factors compared between the two stocks.

About WCF Bancorp

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; personal, mortgage, business, agricultural, and commercial real estate loans; debit and credit cards; and other products. It operates through full-service offices in Webster City, Independence, and Tama, Iowa. The company was founded in 1934 and is based in Webster City, Iowa.

About Meridian Bank

Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, Florida, and Maryland. The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits. It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, shared national credits, and other financing; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services. In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services, as well as financial planning and wealth management services. Meridian Corporation was incorporated in 2004 and is headquartered in Malvern, Pennsylvania.