WSFS Financial (NASDAQ:WSFS) and Broadway Financial (NASDAQ:BYFC) Head-To-Head Survey

Broadway Financial (NASDAQ:BYFC) and WSFS Financial (NASDAQ:WSFS) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for Broadway Financial and WSFS Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	1	0	0	0	1.00
WSFS Financial	0	2	4	0	2.67

WSFS Financial has a consensus price target of $66.25, indicating a potential upside of 26.38%. Given WSFS Financial’s stronger consensus rating and higher probable upside, analysts plainly believe WSFS Financial is more favorable than Broadway Financial.

Earnings & Valuation

This table compares Broadway Financial and WSFS Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$33.75 million	1.74	$1.93 million	($0.13)	-49.23
WSFS Financial	$1.06 billion	2.78	$263.67 million	$4.85	10.81

WSFS Financial has higher revenue and earnings than Broadway Financial. Broadway 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.

Risk & Volatility

Broadway Financial has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, WSFS Financial has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

12.1% of Broadway Financial shares are owned by institutional investors. Comparatively, 88.5% of WSFS Financial shares are owned by institutional investors. 4.1% of Broadway Financial shares are owned by insiders. Comparatively, 1.1% of WSFS Financial shares are owned by 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 Broadway Financial and WSFS Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	3.18%	1.46%	0.15%
WSFS Financial	20.44%	10.60%	1.36%

Summary

WSFS Financial beats Broadway Financial on 13 of the 14 factors compared between the two stocks.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

About WSFS Financial

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. It offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as accepts jumbo certificates of deposit from individuals, businesses, and municipalities. The company also provides a range of loans, which comprise fixed and adjustable rate residential loans; commercial mortgage and commercial loans; commercial construction loans; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion and other business purposes; and consumer credit products, such as home equity loans, home equity lines of credit, automobile loans, unsecured lines of credit, and other secured and unsecured personal installment loans. In addition, it offers insurance products; planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients; retail securities and insurance brokerage services; mortgage and title services; residential mortgage and refinancing solutions; and leases small equipment and fixed assets, as well as provides financial planning, customized investment strategies, brokerage products, fiduciary, and wealth management services. Further, the company provides ATM vault cash, smart safe, and other cash logistics services; and online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, and deposit safe cash logistics services, as well as trustee, agency, bankruptcy administration, custodial and commercial domicile services. The company was founded in 1832 and is based in Wilmington, Delaware.