Analyzing Columbia Financial (NASDAQ:CLBK) and Wayne Savings Bancshares (OTCMKTS:WAYN)

Wayne Savings Bancshares (OTCMKTS:WAYN) and Columbia Financial (NASDAQ:CLBK) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

12.1% of Wayne Savings Bancshares shares are held by institutional investors. Comparatively, 12.7% of Columbia Financial shares are held by institutional investors. 3.2% of Wayne Savings Bancshares shares are held by company insiders. Comparatively, 3.4% of Columbia Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Wayne Savings Bancshares and Columbia Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wayne Savings Bancshares	17.74%	16.26%	1.03%
Columbia Financial	4.11%	2.42%	0.24%

Valuation and Earnings

This table compares Wayne Savings Bancshares and Columbia Financial’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wayne Savings Bancshares	$38.11 million	1.40	$7.83 million	$3.21	7.56
Columbia Financial	$422.36 million	4.19	$36.09 million	$0.16	105.57

Columbia Financial has higher revenue and earnings than Wayne Savings Bancshares. Wayne Savings Bancshares is trading at a lower price-to-earnings ratio than Columbia Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Wayne Savings Bancshares and Columbia Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wayne Savings Bancshares	0	0	0	0	N/A
Columbia Financial	0	1	1	0	2.50

Columbia Financial has a consensus target price of $17.50, suggesting a potential upside of 3.61%. Given Columbia Financial’s higher probable upside, analysts clearly believe Columbia Financial is more favorable than Wayne Savings Bancshares.

Volatility & Risk

Wayne Savings Bancshares has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Columbia Financial has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Summary

Columbia Financial beats Wayne Savings Bancshares on 8 of the 13 factors compared between the two stocks.

About Wayne Savings Bancshares

Wayne Savings Bancshares, Inc. operates as the holding company for Wayne Savings Community Bank that provides personal and business banking products and services to individuals, businesses, and other organizations. The company offers checking, savings, money market, and term certificate accounts, as well as certificates of deposit. It also provides residential mortgage, commercial, installment, residential and nonresidential real estate, commercial real estate, residential construction, multi-family real estate, land, commercial business, consumer, home, home equity, auto, recreational vehicle, personal, furniture and appliance, agriculture, and term loans, as well as lines of credit, government guaranteed programs, and standby letters of credit. In addition, the company offers retirement planning, investment advisory, insurance, and wealth management and trust services. Further, it provides overdraft protection, re-order check, remote deposit capture, merchant, sweep, online and mobile banking, and bill pay services, as well as debit, credit, and gift cards. The company was founded in 1899 and is based in Wooster, Ohio.

About Columbia Financial

Columbia Financial, Inc., a bank holding company, provides various financial services to businesses and consumers in the United States. Its deposit products include checking, interest-earning checking products and municipal, savings and club deposits, and money market accounts, as well as certificates of deposit. The company also provides various loans, including multifamily and commercial real estate loans, commercial business loans, one-to-four family residential loans, construction loans, home equity loans and advances, and other consumer loans, such as automobiles and personal loans, as well as unsecured and overdraft lines of credit. In addition, it offers title insurance products; wealth management services; and cash management services comprising remote deposit, lockbox service, sweep accounts, and escrow services. The company operates full-service banking offices in New Jersey; and branch offices in Freehold, New Jersey. Columbia Financial, Inc. was founded in 1926 and is based in Fair Lawn, New Jersey. Columbia Financial, Inc. is a subsidiary of Columbia Bank MHC.