WSFS Financial Corporation (NASDAQ: WSFS) and Walter Investment Management Corp. (NYSE:WAC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
This table compares WSFS Financial Corporation and Walter Investment Management Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WSFS Financial Corporation||19.96%||10.44%||1.08%|
|Walter Investment Management Corp.||-18.10%||-796.24%||-0.52%|
Risk and Volatility
WSFS Financial Corporation has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Walter Investment Management Corp. has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for WSFS Financial Corporation and Walter Investment Management Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WSFS Financial Corporation||0||0||3||0||3.00|
|Walter Investment Management Corp.||1||1||0||0||1.50|
WSFS Financial Corporation presently has a consensus price target of $51.33, suggesting a potential upside of 3.29%. Walter Investment Management Corp. has a consensus price target of $1.13, suggesting a potential upside of 130.06%. Given Walter Investment Management Corp.’s higher probable upside, analysts clearly believe Walter Investment Management Corp. is more favorable than WSFS Financial Corporation.
Insider & Institutional Ownership
78.4% of WSFS Financial Corporation shares are owned by institutional investors. Comparatively, 56.5% of Walter Investment Management Corp. shares are owned by institutional investors. 4.9% of WSFS Financial Corporation shares are owned by insiders. Comparatively, 46.6% of Walter Investment Management Corp. shares are owned 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.
WSFS Financial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Walter Investment Management Corp. does not pay a dividend. WSFS Financial Corporation pays out 12.7% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares WSFS Financial Corporation and Walter Investment Management Corp.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WSFS Financial Corporation||$307.38 million||5.08||$69.12 million||$2.20||22.59|
|Walter Investment Management Corp.||$947.12 million||0.02||-$217.78 million||($5.96)||-0.08|
WSFS Financial Corporation has higher revenue, but lower earnings than Walter Investment Management Corp.. Walter Investment Management Corp. is trading at a lower price-to-earnings ratio than WSFS Financial Corporation, indicating that it is currently the more affordable of the two stocks.
WSFS Financial Corporation beats Walter Investment Management Corp. on 11 of the 15 factors compared between the two stocks.
WSFS Financial Corporation Company Profile
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.
Walter Investment Management Corp. Company Profile
Walter Investment Management Corp. is a diversified mortgage banking firm focused primarily on the servicing and origination of residential loans, including reverse loans. The Company operates through three segments: Servicing, Originations and Reverse Mortgage. The Servicing segment consists of operations that perform servicing for third-party credit owners of mortgage loans, as well as its own mortgage loan portfolio. The Servicing segment also includes Insurance, and Loans and Residuals businesses. The Originations segment consists of operations that originate and purchase mortgage loans that are intended for sale to third parties. The Reverse Mortgage segment consists of operations which purchases and originates home equity conversion mortgage that are securitized, but remain on the consolidated balance sheet as collateral for secured borrowings.
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