Charter Financial Corp. (NASDAQ: CHFN) and Univest Corporation of Pennsylvania (NASDAQ:UVSP) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Valuation & Earnings
This table compares Charter Financial Corp. and Univest Corporation of Pennsylvania’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Charter Financial Corp.||$75.10 million||3.40||$14.44 million||$0.95||17.76|
|Univest Corporation of Pennsylvania||$182.57 million||4.19||$19.50 million||$1.53||18.73|
Univest Corporation of Pennsylvania has higher revenue and earnings than Charter Financial Corp.. Charter Financial Corp. is trading at a lower price-to-earnings ratio than Univest Corporation of Pennsylvania, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Charter Financial Corp. has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Charter Financial Corp. pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Univest Corporation of Pennsylvania pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Charter Financial Corp. pays out 31.6% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 52.3% 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.
Institutional and Insider Ownership
65.5% of Charter Financial Corp. shares are held by institutional investors. Comparatively, 61.4% of Univest Corporation of Pennsylvania shares are held by institutional investors. 10.4% of Charter Financial Corp. shares are held by company insiders. Comparatively, 3.6% of Univest Corporation of Pennsylvania shares are held by company 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.
This is a breakdown of recent recommendations and price targets for Charter Financial Corp. and Univest Corporation of Pennsylvania, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Charter Financial Corp.||0||0||1||0||3.00|
|Univest Corporation of Pennsylvania||0||2||1||0||2.33|
Charter Financial Corp. presently has a consensus price target of $23.00, suggesting a potential upside of 36.34%. Univest Corporation of Pennsylvania has a consensus price target of $32.67, suggesting a potential upside of 14.02%. Given Charter Financial Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe Charter Financial Corp. is more favorable than Univest Corporation of Pennsylvania.
This table compares Charter Financial Corp. and Univest Corporation of Pennsylvania’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Charter Financial Corp.||19.22%||6.92%||0.98%|
|Univest Corporation of Pennsylvania||18.71%||8.35%||0.99%|
Univest Corporation of Pennsylvania beats Charter Financial Corp. on 8 of the 15 factors compared between the two stocks.
Charter Financial Corp. Company Profile
Charter Financial Corporation is a savings and loan holding company for CharterBank (the Bank). The Bank is a federally-chartered savings bank. The Bank’s principal business consists of attracting retail deposits from the general public and investing those deposits, together with funds generated from operations, in commercial real estate loans, one- to four-family residential mortgage loans, construction loans and investment securities, commercial business loans, home equity loans and lines of credit, and other consumer loans. The Bank offers a range of community banking services to its customers, including online banking and bill payment services, mobile banking, online cash management, safe deposit box rentals, debit card, and automated teller machine (ATM) card services and the availability of a network of ATMs. As of September 30, 2016, the Company operated 20 branch offices in west-central Georgia, east-central Alabama and the Florida Gulf Coast.
Univest Corporation of Pennsylvania Company Profile
Univest Corporation of Pennsylvania is the bank holding company of Univest Bank and Trust Co. (the Bank). The Bank is a Pennsylvania state-chartered bank and trust company. The Company’s business segments include Banking, Wealth Management and Insurance. The Banking segment provides financial services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions. The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.
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