Analyzing FFW (OTCMKTS:FFWC) and Provident Financial Services (NYSE:PFS)

FFW (OTCMKTS:FFWC) and Provident Financial Services (NYSE:PFS) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Valuation and Earnings

This table compares FFW and Provident Financial Services”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FFW	$32.63 million	1.39	$5.54 million	$5.01	8.33
Provident Financial Services	$1.14 billion	2.27	$115.53 million	$1.77	11.22

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

Dividends

FFW pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.8%. FFW pays out 24.0% of its earnings in the form of a dividend. Provident Financial Services pays out 54.2% 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.

Profitability

This table compares FFW and Provident Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FFW	16.99%	N/A	N/A
Provident Financial Services	16.97%	8.80%	0.96%

Risk & Volatility

FFW has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500. Comparatively, Provident Financial Services has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Institutional & Insider Ownership

72.0% of Provident Financial Services shares are owned by institutional investors. 17.0% of FFW shares are owned by insiders. Comparatively, 3.1% of Provident Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for FFW and Provident Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FFW	0	0	0	0	0.00
Provident Financial Services	0	0	4	1	3.20

Provident Financial Services has a consensus target price of $22.70, suggesting a potential upside of 14.33%. Given Provident Financial Services’ stronger consensus rating and higher probable upside, analysts plainly believe Provident Financial Services is more favorable than FFW.

Summary

Provident Financial Services beats FFW on 13 of the 17 factors compared between the two stocks.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.

About Provident Financial Services

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.