Head-To-Head Analysis: WSFS Financial (WSFS) & Hingham Institution for Savings (HIFS)

WSFS Financial (NASDAQ: WSFS) and Hingham Institution for Savings (NASDAQ:HIFS) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Dividends

WSFS Financial pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Hingham Institution for Savings pays an annual dividend of $1.36 per share and has a dividend yield of 0.7%. WSFS Financial pays out 19.5% of its earnings in the form of a dividend. Hingham Institution for Savings pays out 11.4% 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.

Risk and Volatility

WSFS Financial has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

80.1% of WSFS Financial shares are held by institutional investors. Comparatively, 29.1% of Hingham Institution for Savings shares are held by institutional investors. 4.9% of WSFS Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares WSFS Financial and Hingham Institution for Savings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WSFS Financial 15.70% 11.46% 1.21%
Hingham Institution for Savings 31.23% N/A N/A

Analyst Ratings

This is a summary of recent recommendations for WSFS Financial and Hingham Institution for Savings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSFS Financial 0 2 3 0 2.60
Hingham Institution for Savings 0 0 0 0 N/A

WSFS Financial currently has a consensus price target of $56.00, suggesting a potential upside of 13.25%. Given WSFS Financial’s higher probable upside, analysts clearly believe WSFS Financial is more favorable than Hingham Institution for Savings.

Earnings & Valuation

This table compares WSFS Financial and Hingham Institution for Savings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WSFS Financial $379.37 million 4.10 $59.55 million $1.85 26.73
Hingham Institution for Savings $82.47 million 5.20 $25.76 million $11.91 17.07

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

Summary

WSFS Financial beats Hingham Institution for Savings on 11 of the 15 factors compared between the two stocks.

About WSFS Financial

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.

About Hingham Institution for Savings

Hingham Institution for Savings (the Bank) is a Massachusetts-chartered savings bank (the Bank). The Bank is principally engaged in the business of residential and commercial real estate mortgage lending, funded by a retail deposit network and borrowings. The Bank provides a range of financial services to individuals and small businesses through its approximately 10 offices in Boston and southeastern Massachusetts. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending products are residential and commercial mortgage loans secured by properties in Eastern Massachusetts. The Bank offers personal checking accounts, money market and savings accounts, as well as longer term certificates of deposit for individuals, businesses, non-profits, cities and towns. The Bank’s loan portfolio includes residential real estate, commercial real estate, construction, home equity, commercial and consumer segments.

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