Penns Woods Bancorp (NASDAQ:PWOD) and Guaranty Federal Bancshares (NASDAQ:GFED) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
26.6% of Penns Woods Bancorp shares are owned by institutional investors. Comparatively, 27.5% of Guaranty Federal Bancshares shares are owned by institutional investors. 3.4% of Penns Woods Bancorp shares are owned by company insiders. Comparatively, 29.5% of Guaranty Federal Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Penns Woods Bancorp and Guaranty Federal Bancshares’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Penns Woods Bancorp||$68.21 million||3.01||$14.71 million||N/A||N/A|
|Guaranty Federal Bancshares||$49.80 million||2.04||$7.33 million||$2.18||10.41|
Penns Woods Bancorp has higher revenue and earnings than Guaranty Federal Bancshares.
This table compares Penns Woods Bancorp and Guaranty Federal Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Penns Woods Bancorp||21.56%||10.91%||0.93%|
|Guaranty Federal Bancshares||15.22%||13.26%||1.07%|
This is a breakdown of current ratings and target prices for Penns Woods Bancorp and Guaranty Federal Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Penns Woods Bancorp||0||0||0||0||N/A|
|Guaranty Federal Bancshares||0||0||1||0||3.00|
Guaranty Federal Bancshares has a consensus target price of $28.00, indicating a potential upside of 23.35%. Given Guaranty Federal Bancshares’ higher probable upside, analysts plainly believe Guaranty Federal Bancshares is more favorable than Penns Woods Bancorp.
Penns Woods Bancorp pays an annual dividend of $1.88 per share and has a dividend yield of 4.3%. Guaranty Federal Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.3%. Guaranty Federal Bancshares pays out 23.9% of its earnings in the form of a dividend. Guaranty Federal Bancshares has raised its dividend for 4 consecutive years.
About Penns Woods Bancorp
Penns Woods Bancorp, Inc. operates as the bank holding company for Jersey Shore State Bank and Luzerne Bank, which provides commercial and retail banking services to individuals, partnerships, non-profit organizations, and corporations. The company accepts time, demand, and savings deposits, including super NOW accounts, statement savings accounts, money market accounts, and certificates of deposit, as well as checking accounts and IRAs. It also offers loan products comprising residential, commercial, and construction real estate loans; agricultural loans for the purchase or improvement of real estate; commercial loans for the acquisition and improvement of real estate, purchase of equipment, and working capital purposes; letters of credit; consumer loans, such as residential mortgages, home equity loans and lines, automobile financing, personal loans and lines of credit, and overdraft and check lines; and revolving credit loans with overdraft protection. In addition, the company provides securities brokerage and financial planning services, which include the sale of life insurance products, annuities, and estate planning services; property and casualty, and auto insurance products; safe deposit services; ATM services; and Internet and telephone banking services. Additionally, it engages in real estate transactions and investment activities. The company operates through a network of 26 offices located in Clinton, Lycoming, Centre, Montour, Union, and Luzerne counties, Pennsylvania. Penns Woods Bancorp, Inc. was incorporated in 1983 and is based in Williamsport, Pennsylvania.
About Guaranty Federal Bancshares
Guaranty Federal Bancshares, Inc. operates as the bank holding company for Guaranty Bank that provides a range of banking and mortgage services to individual and corporate customers in southwest Missouri. The company's deposit products include checking accounts, money market accounts, savings accounts, fixed-term certificates of deposit, and individual retirement accounts, as well as demand deposits and NOW accounts. Its loan portfolio comprises commercial real estate loans, one-to four-family mortgage loans, multi-family residential mortgage loans, and construction loans; and consumer and other loans, such as loans secured by certificates of deposit, automobile loans, boat loans, and home equity loans, as well as business loans. As of January 23, 2019, the company had 16 full-service branches in Greene, Christian, Jasper, and Newton Counties and a loan production office in Webster County. Guaranty Federal Bancshares, Inc. was founded in 1913 and is based in Springfield, Missouri.
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