Head-To-Head Comparison: Citizens Financial Services (NASDAQ:CZFS) versus Western New England Bancorp (NASDAQ:WNEB)

Western New England Bancorp (NASDAQ:WNEB) and Citizens Financial Services (NASDAQ:CZFS) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Western New England Bancorp and Citizens Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western New England Bancorp	$131.13 million	2.07	$15.27 million	$0.84	16.11
Citizens Financial Services	$173.51 million	2.23	$36.57 million	$8.55	9.42

Citizens Financial Services has higher revenue and earnings than Western New England Bancorp. Citizens Financial Services is trading at a lower price-to-earnings ratio than Western New England Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Western New England Bancorp and Citizens Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western New England Bancorp	0	3	1	0	2.25
Citizens Financial Services	0	1	1	1	3.00

Western New England Bancorp presently has a consensus price target of $15.50, indicating a potential upside of 14.56%. Given Western New England Bancorp’s higher probable upside, analysts plainly believe Western New England Bancorp is more favorable than Citizens Financial Services.

Dividends

Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Citizens Financial Services pays an annual dividend of $2.04 per share and has a dividend yield of 2.5%. Western New England Bancorp pays out 33.3% of its earnings in the form of a dividend. Citizens Financial Services pays out 23.9% 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. Citizens Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Western New England Bancorp has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Citizens Financial Services has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Insider & Institutional Ownership

67.9% of Western New England Bancorp shares are held by institutional investors. Comparatively, 22.5% of Citizens Financial Services shares are held by institutional investors. 6.6% of Western New England Bancorp shares are held by company insiders. Comparatively, 5.5% of Citizens Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Western New England Bancorp and Citizens Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western New England Bancorp	12.43%	6.78%	0.61%
Citizens Financial Services	23.31%	12.06%	1.33%

Summary

Citizens Financial Services beats Western New England Bancorp on 11 of the 16 factors compared between the two stocks.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.

About Citizens Financial Services

Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.