Business First Bancshares (NASDAQ:BFST – Get Free Report) and Western New England Bancorp (NASDAQ:WNEB – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Business First Bancshares and Western New England Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Business First Bancshares | 0 | 0 | 5 | 0 | 3.00 |
| Western New England Bancorp | 0 | 3 | 1 | 0 | 2.25 |
Business First Bancshares presently has a consensus price target of $35.75, suggesting a potential upside of 11.32%. Western New England Bancorp has a consensus price target of $15.50, suggesting a potential upside of 14.30%. Given Western New England Bancorp’s higher probable upside, analysts plainly believe Western New England Bancorp is more favorable than Business First Bancshares.
Profitability
This table compares Business First Bancshares and Western New England Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Business First Bancshares | 17.08% | 11.18% | 1.15% |
| Western New England Bancorp | 14.53% | 8.04% | 0.72% |
Earnings and Valuation
This table compares Business First Bancshares and Western New England Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Business First Bancshares | $516.55 million | 2.00 | $87.86 million | $2.80 | 11.47 |
| Western New England Bancorp | $131.13 million | 2.05 | $15.27 million | $1.00 | 13.56 |
Business First Bancshares has higher revenue and earnings than Western New England Bancorp. Business First Bancshares 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.
Dividends
Business First Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.9%. Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Business First Bancshares pays out 21.4% of its earnings in the form of a dividend. Western New England Bancorp pays out 28.0% 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. Business First Bancshares has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
47.4% of Business First Bancshares shares are owned by institutional investors. Comparatively, 67.9% of Western New England Bancorp shares are owned by institutional investors. 5.7% of Business First Bancshares shares are owned by company insiders. Comparatively, 6.6% of Western New England Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Business First Bancshares has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Summary
Business First Bancshares beats Western New England Bancorp on 10 of the 16 factors compared between the two stocks.
About Business First Bancshares
Business First Bancshares, Inc. is the bank holding company for b1BANK, a regional bank serving businesses, individuals and institutions. The bank offers commercial and personal banking, treasury management, private banking and digital banking services. Founded in Louisiana in 2006 and headquartered in Baton Rouge, Business First has expanded its presence across Louisiana and into Texas. Its services include lending and deposit products for businesses, as well as checking, savings and other banking solutions for consumers.
About Western New England Bancorp
Western New England Bancorp, Inc. is the bank holding company for Westfield Bank, a community bank headquartered in Westfield, Massachusetts. Westfield Bank traces its history to 1853 and serves individuals, businesses, and organizations in western Massachusetts and northern Connecticut. The bank offers deposit accounts, including checking and savings accounts and certificates of deposit, along with lending services such as commercial, residential mortgage, and consumer loans. It also provides business banking and cash-management services, as well as digital banking options.
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