ChoiceOne Financial Services (NASDAQ:COFS) & Winland Electronics (OTCMKTS:WELX) Critical Contrast

Winland Electronics (OTCMKTS:WELX) and ChoiceOne Financial Services (NASDAQ:COFS) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Winland Electronics and ChoiceOne Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winland Electronics	$4.98 million	2.70	$5.91 million	$1.13	2.35
ChoiceOne Financial Services	$227.62 million	1.97	$28.18 million	$1.50	19.85

ChoiceOne Financial Services has higher revenue and earnings than Winland Electronics. Winland Electronics is trading at a lower price-to-earnings ratio than ChoiceOne Financial Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Winland Electronics and ChoiceOne Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winland Electronics	N/A	N/A	N/A
ChoiceOne Financial Services	12.38%	11.81%	1.20%

Insider and Institutional Ownership

19.9% of ChoiceOne Financial Services shares are held by institutional investors. 8.1% of Winland Electronics shares are held by insiders. Comparatively, 5.9% of ChoiceOne Financial Services shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Winland Electronics and ChoiceOne Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winland Electronics	0	0	0	0	0.00
ChoiceOne Financial Services	0	3	2	0	2.40

ChoiceOne Financial Services has a consensus price target of $35.50, indicating a potential upside of 19.21%. Given ChoiceOne Financial Services’ stronger consensus rating and higher possible upside, analysts clearly believe ChoiceOne Financial Services is more favorable than Winland Electronics.

Risk & Volatility

Winland Electronics has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, ChoiceOne Financial Services has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Summary

ChoiceOne Financial Services beats Winland Electronics on 11 of the 14 factors compared between the two stocks.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.

About ChoiceOne Financial Services

ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial lending products, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers alternative investment products, which include annuities and mutual funds; and sells insurance policies, such as life and health for commercial and consumer clients. Further, it provides trust and wealth management services. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.