Critical Comparison: Grupo Supervielle (NYSE:SUPV) and Western New England Bancorp (NASDAQ:WNEB)

Western New England Bancorp (NASDAQ:WNEB) and Grupo Supervielle (NYSE:SUPV) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Dividends

Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.4%. Grupo Supervielle pays an annual dividend of $0.18 per share and has a dividend yield of 1.6%. Western New England Bancorp pays out 42.4% of its earnings in the form of a dividend. Grupo Supervielle pays out 27.3% 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.

Insider & Institutional Ownership

67.9% of Western New England Bancorp shares are held by institutional investors. 6.1% of Western New England Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Western New England Bancorp and Grupo Supervielle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western New England Bancorp	10.33%	5.62%	0.50%
Grupo Supervielle	4.08%	6.82%	1.16%

Valuation & Earnings

This table compares Western New England Bancorp and Grupo Supervielle”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western New England Bancorp	$79.10 million	3.08	$11.67 million	$0.66	18.00
Grupo Supervielle	$790.04 billion	0.00	$114.94 million	$0.66	17.18

Grupo Supervielle has higher revenue and earnings than Western New England Bancorp. Grupo Supervielle 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Western New England Bancorp and Grupo Supervielle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western New England Bancorp	0	2	0	1	2.67
Grupo Supervielle	0	2	2	0	2.50

Western New England Bancorp currently has a consensus price target of $11.00, indicating a potential downside of 7.41%. Grupo Supervielle has a consensus price target of $15.50, indicating a potential upside of 36.70%. Given Grupo Supervielle’s higher probable upside, analysts clearly believe Grupo Supervielle is more favorable than Western New England Bancorp.

Risk & Volatility

Western New England Bancorp has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Grupo Supervielle has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.

About Grupo Supervielle

Grupo Supervielle S.A., a financial services holding company, provides various banking products and services in Argentina. The company operates through Personal & Business Banking, Corporate Banking, Bank Treasury, Consumer Finance, Insurance, and Asset Management and Other Services segments. It offers savings accounts, time and demand deposits, and checking accounts; various loan products, including personal, consumer, mortgage, unsecured, and car loans; overdrafts; loans with special facilities for project and working capital financing; and leasing, bank guarantees for tenants, salary advances, domestic and international factoring, international guarantees and letters of credit, payroll payment plans, credit and debit cards, and senior citizens benefit payment services, as well as financial services and investments, such as mutual funds and guarantees. The company also provides foreign trade and cash management; advisory services; treasury services; insurance products comprising life, home, personal accidents, technology, ATMs, protected bag, and protected content; and asset management and other services, as well as operates as a digital online broker. It operates through a network of bank branches, ATMs, and self-service terminals, as well as ATMs with biometric identification. The company was formerly known as Inversiones y Participaciones S.A. and changed its name to Grupo Supervielle S.A. in November 2008. Grupo Supervielle S.A. was founded in 1887 and is based in Buenos Aires, Argentina.