Ellington Financial (NYSE: EFC) and WSFS Financial (NASDAQ:WSFS) are both small-cap financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
This is a breakdown of current recommendations for Ellington Financial and WSFS Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares Ellington Financial and WSFS Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ellington Financial||$93.96 million||5.03||$33.98 million||$1.05||14.30|
|WSFS Financial||$379.37 million||4.18||$50.24 million||$1.97||25.63|
WSFS Financial has higher revenue and earnings than Ellington Financial. Ellington Financial is trading at a lower price-to-earnings ratio than WSFS Financial, indicating that it is currently the more affordable of the two stocks.
This table compares Ellington Financial and WSFS Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Ellington Financial has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, WSFS Financial has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
Institutional & Insider Ownership
45.4% of Ellington Financial shares are held by institutional investors. Comparatively, 80.1% of WSFS Financial shares are held by institutional investors. 10.6% of Ellington Financial shares are held by insiders. Comparatively, 4.9% of WSFS Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Ellington Financial pays an annual dividend of $1.64 per share and has a dividend yield of 10.9%. WSFS Financial pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Ellington Financial pays out 156.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WSFS Financial pays out 18.3% of its earnings in the form of a dividend.
About Ellington Financial
Ellington Financial LLC is a specialty finance company that acquires and manages mortgage-related and other financial assets. The Company’s targeted assets include residential mortgage-backed securities (RMBS), backed by loans for which the principal and interest payments are not guaranteed by a United States Government agency or a United States Government-sponsored entity, collectively referred to as non-Agency RMBS; RMBS for which the principal and interest payments are guaranteed by the United States government agency or the United States government-sponsored entity (Agency RMBS); consumer loans and asset-backed securities (ABS) backed by consumer loans; commercial mortgage-backed securities (CMBS) commercial mortgage loans and other commercial real estate debt; residential mortgage loans; collateralized loan obligations (CLOs); corporate debt and equity, including distressed debt and equity, and mortgage-related derivatives.
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.
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