1st Constitution Bancorp (NASDAQ:FCCY) and Malvern Bancorp (NASDAQ:MLVF) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
Risk & Volatility
1st Constitution Bancorp has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Malvern Bancorp has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
This table compares 1st Constitution Bancorp and Malvern Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|1st Constitution Bancorp||$59.39 million||2.48||$12.05 million||$1.56||10.90|
|Malvern Bancorp||$43.33 million||3.81||$7.30 million||N/A||N/A|
1st Constitution Bancorp has higher revenue and earnings than Malvern Bancorp.
Institutional and Insider Ownership
34.5% of 1st Constitution Bancorp shares are owned by institutional investors. Comparatively, 62.7% of Malvern Bancorp shares are owned by institutional investors. 14.6% of 1st Constitution Bancorp shares are owned by insiders. Comparatively, 3.8% of Malvern Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
1st Constitution Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Malvern Bancorp does not pay a dividend. 1st Constitution Bancorp pays out 19.2% of its earnings in the form of a dividend. 1st Constitution Bancorp has raised its dividend for 2 consecutive years.
This is a breakdown of recent ratings and recommmendations for 1st Constitution Bancorp and Malvern Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|1st Constitution Bancorp||0||1||1||0||2.50|
1st Constitution Bancorp presently has a consensus price target of $19.80, indicating a potential upside of 16.37%. Malvern Bancorp has a consensus price target of $22.50, indicating a potential upside of 5.88%. Given 1st Constitution Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe 1st Constitution Bancorp is more favorable than Malvern Bancorp.
This table compares 1st Constitution Bancorp and Malvern Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|1st Constitution Bancorp||22.00%||11.00%||1.17%|
1st Constitution Bancorp beats Malvern Bancorp on 11 of the 16 factors compared between the two stocks.
1st Constitution Bancorp Company Profile
1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central, coastal, and northeastern areas of New Jersey. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and negotiable order of withdrawal accounts; and non-interest bearing demand, savings, and time deposits, as well as certificates of deposit. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of December 31, 2018, the company operated through 19 additional branch offices in Asbury Park, Cranbury, Fair Haven, Fort Lee, Freehold, Hamilton Square, Hightstown, Hillsborough, Hopewell, Jamesburg, Lawrenceville, Little Silver, Neptune City, Perth Amboy, Plainsboro, Skillman, Princeton, Rumson, and Shrewsbury, New Jersey; and 2 residential mortgage loan production offices in Forked River and Jersey City, New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.
Malvern Bancorp Company Profile
Malvern Bancorp, Inc. operates as the bank holding company for Malvern Bank that provides various banking products and services to consumer and business customers in Pennsylvania. The company accepts checking accounts, retirement accounts, money market accounts, time and savings accounts, interest and non-interest bearing accounts, NOW accounts, and CDARS/ICS reciprocal deposits. Its loan products include residential mortgage loans, such as one class and one-to four-family first lien residential mortgage loans; residential and commercial construction loans, and land loans; commercial loans, such as commercial real estate loans, multi-family real estate loans, industrial loans, and commercial business loans; and consumer loans comprising home equity lines of credit, second mortgage loans, and unsecured consumer lines of credit. The company also offers credit cards; wealth management and advisory services, such as liquidity management, investment, 401k accounts and planning, custody, lending, wealth planning, trust and fiduciary, family wealth advisory, and philanthropic advisory services; insurance services; and wire transfer, automated teller, Internet banking, ACH origination, telephone and mobile banking, safe deposit box, remote deposit capture banking, and mobile remote deposit capture banking services. As of September 30, 2018, the company owns and maintains its headquarters and six full-service financial centers; leases financial centers in Glen Mills and Villanova, Pennsylvania; private banking offices in Morristown, New Jersey and Palm Beach, Florida; and leases representative office in Montchanin, Delaware. Malvern Bancorp, Inc. was founded in 1887 and is based in Paoli, Pennsylvania.
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