Eastern Virginia Bankshares (EVBS) & Wintrust Financial (WTFC) Critical Survey
Eastern Virginia Bankshares (NASDAQ: EVBS) and Wintrust Financial (NASDAQ:WTFC) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
This is a breakdown of current recommendations and price targets for Eastern Virginia Bankshares and Wintrust Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eastern Virginia Bankshares||0||1||0||0||2.00|
Eastern Virginia Bankshares pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Wintrust Financial pays an annual dividend of $0.76 per share and has a dividend yield of 0.9%. Eastern Virginia Bankshares pays out 38.7% of its earnings in the form of a dividend. Wintrust Financial pays out 17.3% 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.
This table compares Eastern Virginia Bankshares and Wintrust Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eastern Virginia Bankshares||13.18%||4.20%||0.50%|
Institutional and Insider Ownership
44.2% of Eastern Virginia Bankshares shares are owned by institutional investors. Comparatively, 90.4% of Wintrust Financial shares are owned by institutional investors. 4.8% of Eastern Virginia Bankshares shares are owned by insiders. Comparatively, 2.0% of Wintrust Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Eastern Virginia Bankshares and Wintrust Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eastern Virginia Bankshares||N/A||N/A||N/A||$0.31||35.52|
|Wintrust Financial||$1.27 billion||3.78||$257.68 million||$4.40||19.43|
Wintrust Financial has higher revenue and earnings than Eastern Virginia Bankshares. Wintrust Financial is trading at a lower price-to-earnings ratio than Eastern Virginia Bankshares, indicating that it is currently the more affordable of the two stocks.
Wintrust Financial beats Eastern Virginia Bankshares on 10 of the 13 factors compared between the two stocks.
Eastern Virginia Bankshares Company Profile
Eastern Virginia Bankshares, Inc. is a bank holding company. The Company operates through its bank subsidiary, EVB (the Bank). EVB is a community bank focusing on small to medium-sized businesses and consumers in its coastal plain markets and the emerging suburbs outside of the Richmond, Tidewater, and southern Virginia areas. The Company provides general commercial financial services to customers located in the geographic areas of its retail branch network. It provides a range of personal and commercial banking services, including commercial, consumer and real estate loans. Its investment securities include agency residential mortgage-backed securities, agency commercial mortgage-backed securities, and state and political subdivisions. The Company offers a range of retail and commercial deposit products and fee-based services. Its deposits include demand deposits, savings and money market accounts, and time deposits.
Wintrust Financial Company Profile
Wintrust Financial Corporation is a financial holding company. The Company conducts its businesses through three segments: community banking, specialty finance and wealth management. The Company offers community banking services to individuals, small to mid-sized businesses, local governmental units and institutional clients. Through specialty finance segment, the Company offers financing of insurance premiums for businesses and individuals; accounts receivable financing, value-added, out-sourced administrative services, and other specialty finance businesses. The Company offers a range of wealth management services through its subsidiaries, including trust and investment services, asset management and securities brokerage services. The Company offers MaxSafe deposit accounts, which provide customers with expanded Federal Deposit Insurance Corporation (FDIC) insurance coverage by spreading a customer’s deposit across its banks.
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