WVS Financial (WVFC) vs. United Community Financial (NASDAQ:UCFC) Financial Analysis

WVS Financial (NASDAQ:WVFC) and United Community Financial (NASDAQ:UCFC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares WVS Financial and United Community Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WVS Financial 23.29% 7.79% 0.75%
United Community Financial 27.75% 12.34% 1.35%

Dividends

WVS Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. United Community Financial pays an annual dividend of $0.28 per share and has a dividend yield of 2.9%. United Community Financial pays out 37.8% of its earnings in the form of a dividend. WVS Financial has raised its dividend for 2 consecutive years and United Community Financial has raised its dividend for 3 consecutive years. United Community Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

21.8% of WVS Financial shares are held by institutional investors. Comparatively, 62.2% of United Community Financial shares are held by institutional investors. 17.4% of WVS Financial shares are held by company insiders. Comparatively, 4.2% of United Community Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for WVS Financial and United Community Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WVS Financial 0 0 0 0 N/A
United Community Financial 0 1 1 0 2.50

United Community Financial has a consensus target price of $12.00, indicating a potential upside of 24.61%. Given United Community Financial’s higher probable upside, analysts plainly believe United Community Financial is more favorable than WVS Financial.

Volatility & Risk

WVS Financial has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, United Community Financial has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Valuation and Earnings

This table compares WVS Financial and United Community Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WVS Financial $10.14 million 3.40 $2.12 million N/A N/A
United Community Financial $133.97 million 3.57 $37.18 million $0.74 13.01

United Community Financial has higher revenue and earnings than WVS Financial.

Summary

United Community Financial beats WVS Financial on 11 of the 14 factors compared between the two stocks.

WVS Financial Company Profile

WVS Financial Corp. operates as the bank holding company for West View Savings Bank that provides various banking products and services to residents and businesses. The company offers deposit products, including regular savings accounts, demand accounts, negotiable order of withdrawal accounts, money market deposit accounts, and certificates of deposit, as well as individual retirement account certificates. It also provides single-family and multi-family residential real estate loans; commercial real estate loans; construction loans; land acquisition and development loans; commercial loans comprising loans secured by accounts receivable, marketable investment securities, business inventory and equipment, and related collaterals; and consumer loans, such as home equity loans, home equity lines of credit, loans secured by deposit accounts, and personal and education loans. The company operates six offices in the North Hills suburbs of Pittsburgh, Pennsylvania. WVS Financial Corp. was founded in 1993 and is based in Pittsburgh, Pennsylvania.

United Community Financial Company Profile

United Community Financial Corp. operates as the holding company for Home Savings Bank that provides consumer and business banking services. The company offers various deposit instruments, including checking accounts, regular savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It provides commercial loans, such as multifamily loans; nonresidential real estate loans comprising retail centers, office buildings, and industrial buildings; land loans; loans for the construction of multifamily properties, nonresidential real estate projects, and to builders; and secured and unsecured loans, including traditional lines of credit, revolving lines of credit, and term loans. The company also offers residential mortgage loans consisting of one-to four-family loans; loans for the construction of one-to four-family residences; and consumer loans, such as home equity loans, home equity lines of credit, recreational vehicle loans, unsecured loans, and cash-secured loans. In addition, it provides insurance products for business and residential customers, including auto, homeowners, life-health, commercial, surety bonds, and aviation. The company offers services through its main office located in Youngstown, Ohio; and 35 retail banking offices, 3 wealth management offices, and 13 residential mortgage loan centers located in Ohio, Western Pennsylvania, and West Virginia. United Community Financial Corp. was founded in 1889 and is based in Youngstown, Ohio.

Receive News & Ratings for WVS Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WVS Financial and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply

Leave a Reply