Reviewing Webster Financial Corporation (WBS)’s and Wellesley Bancorp Inc. (NASDAQ:WEBK)’s results

Both Webster Financial Corporation (NYSE:WBS) and Wellesley Bancorp Inc. (NASDAQ:WEBK) are each other’s competitor in the Regional – Northeast Banks industry. Thus the compare of their dividends, analyst recommendations, profitability, risk, institutional ownership, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Webster Financial Corporation 1.15B 4.43 351.70M 3.52 16.38
Wellesley Bancorp Inc. 26.73M 2.82 5.99M 2.39 13.33

Table 1 shows gross revenue, earnings per share and valuation of the two companies. Wellesley Bancorp Inc. appears to has lower revenue and earnings than Webster Financial Corporation. The business that is currently more expensive of the two stocks is the one that has a higher P/E ratio. Webster Financial Corporation is currently more expensive than Wellesley Bancorp Inc., because it’s trading at a higher P/E ratio.


Table 2 hightlights the return on assets, return on equity and net margins of the two companies.

Net Margins Return on Equity Return on Assets
Webster Financial Corporation 30.58% 11.6% 1.1%
Wellesley Bancorp Inc. 22.41% 6.9% 0.5%

Risk and Volatility

Webster Financial Corporation has a 1.19 beta, while its volatility is 19.00% which is more volatile than Standard & Poor’s 500. Competitively, Wellesley Bancorp Inc.’s beta is 0.5 which is 50.00% less volatile than Standard & Poor’s 500.


Webster Financial Corporation pays out a $1.25 per share dividend on a yearly basis and it also offers 2.26% dividend yield. The dividend yield for Wellesley Bancorp Inc. is 0.66% while its annual dividend payout is $0.22 per share.

Analyst Ratings

Recommendations and Ratings for Webster Financial Corporation and Wellesley Bancorp Inc. can be find in next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Webster Financial Corporation 1 0 1 2.50
Wellesley Bancorp Inc. 0 0 0 0.00

Webster Financial Corporation’s upside potential is 18.01% at a $65 consensus price target.

Institutional and Insider Ownership

Roughly 93.9% of Webster Financial Corporation shares are owned by institutional investors while 11.1% of Wellesley Bancorp Inc. are owned by institutional investors. Insiders owned 0.8% of Webster Financial Corporation shares. Comparatively, 3.1% are Wellesley Bancorp Inc.’s share owned by insiders.


In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Webster Financial Corporation 1.95% 6.87% -3.76% -11.84% 5.67% 16.82%
Wellesley Bancorp Inc. -1.69% 11.77% 2.93% -5.03% 18.18% 15.03%

For the past year Webster Financial Corporation was more bullish than Wellesley Bancorp Inc.


On 16 of the 15 factors Webster Financial Corporation beats Wellesley Bancorp Inc.

Webster Financial Corporation operates as the holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the United States. It operates through four segments: Commercial Banking, Community Banking, HSA Bank, and Private Banking. The Commercial Banking segment provides lending, deposit, and cash management services to middle market companies; and asset-based lending, commercial real estate, and equipment finance, as well as treasury and payment services, which include government and institutional banking. The Community Banking segment offers deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit cards to consumers, as well as investment and securities-related services, including brokerage and investment advice through a strategic partnership with LPL Financial Holdings Inc. This segment also provides credit, deposit, and cash flow management products to businesses and professional service firms. The HSA Bank segment offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions to employers for the benefit of their employees and individuals. The Private Banking segment provides relationship banking services for high net worth clients, not-for-profit organizations, and business clients for asset management, trust, loan, and deposit products and financial planning services. The company also provides its services telephone and mobile banking services, as well as through its Website. As of February 14, 2017, it operated 175 banking centers and 350 ATMs. Webster Financial Corporation was founded in 1935 and is headquartered in Waterbury, Connecticut.

Wellesley Bancorp, Inc. operates as the bank holding company for Wellesley Bank that provides various financial services to individuals, non-profit organizations, small businesses, and other entities in eastern Massachusetts. Its deposit products include noninterest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising negotiable order of withdrawal and money market accounts; savings accounts; and certificates of deposit, as well as offers remote capture products. The company also offers residential mortgage loans, commercial real estate loans, and construction loans, as well as home equity lines of credit and other consumer loans that consist of fixed-rate second mortgage loans, automobile loans, loans secured by passbook or certificate accounts, and overdraft loans; and commercial business loans, such as term loans, revolving lines of credit, and equipment loans. In addition, it is involved in the provision of investment advisory services, as well as a range of non-deposit investment products, including mutual funds and equities through a third-party registered broker-dealer. As of December 31, 2015, Wellesley Bancorp, Inc. operated through an executive office and three full service branch offices located in Wellesley, Massachusetts; one limited service office in Needham; and one full-service branch office in Boston. The company was founded in 1911 and is based in Wellesley, Massachusetts.

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