Critical Survey: WSFS Financial Corporation (WSFS) and Its Competitors

WSFS Financial Corporation (NASDAQ: WSFS) is one of 26 publicly-traded companies in the “Retail & Mortgage Banks” industry, but how does it compare to its competitors? We will compare WSFS Financial Corporation to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares WSFS Financial Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
WSFS Financial Corporation $307.38 million N/A 20.09
WSFS Financial Corporation Competitors $678.45 million $169.32 million 11.71

WSFS Financial Corporation’s competitors have higher revenue and earnings than WSFS Financial Corporation. WSFS Financial Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

WSFS Financial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. WSFS Financial Corporation pays out 12.7% of its earnings in the form of a dividend. As a group, “Retail & Mortgage Banks” companies pay a dividend yield of 1.7% and pay out 28.4% of their earnings in the form of a dividend.

Profitability

This table compares WSFS Financial Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WSFS Financial Corporation 19.96% 10.44% 1.08%
WSFS Financial Corporation Competitors 14.79% -27.41% 0.87%

Risk and Volatility

WSFS Financial Corporation has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, WSFS Financial Corporation’s competitors have a beta of 0.82, meaning that their average share price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

78.4% of WSFS Financial Corporation shares are held by institutional investors. Comparatively, 54.9% of shares of all “Retail & Mortgage Banks” companies are held by institutional investors. 4.9% of WSFS Financial Corporation shares are held by insiders. Comparatively, 12.9% of shares of all “Retail & Mortgage Banks” companies are held by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for WSFS Financial Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSFS Financial Corporation 0 0 3 0 3.00
WSFS Financial Corporation Competitors 158 557 513 23 2.32

WSFS Financial Corporation presently has a consensus target price of $51.33, suggesting a potential upside of 16.14%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 29.20%. Given WSFS Financial Corporation’s competitors higher possible upside, analysts clearly believe WSFS Financial Corporation has less favorable growth aspects than its competitors.

Summary

WSFS Financial Corporation beats its competitors on 9 of the 14 factors compared.

About WSFS Financial Corporation

WSFS Financial Corporation is a savings and loan holding company. The Company’s subsidiary is Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), which is the bank and trust company. It operates in three segments: WSFS Bank, Cash Connect and Wealth Management. The WSFS Bank segment provides loans and other financial products to commercial and retail customers. Its Cash Connect segment provides automated teller machine (ATM) services through strategic partnerships with several of the network, manufacturers and service providers in the ATM industry. The Wealth Management segment provides a range of fiduciary, investment management, credit and deposit products to clients. Its banking business is commercial lending funded by customer-generated deposits. It also offers a range of consumer loan products, retail securities and insurance brokerage services. Its subsidiaries include WSFS Wealth Investments, 1832 Holdings, Inc., Monarch and West Capital Management.

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