Finward Bancorp (NASDAQ:FNWD) versus Western New England Bancorp (NASDAQ:WNEB) Head-To-Head Comparison

Finward Bancorp (NASDAQ:FNWD) and Western New England Bancorp (NASDAQ:WNEB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Dividends

Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 4.3%. Finward Bancorp pays out 13.3% of its earnings in the form of a dividend. Western New England Bancorp pays out 46.7% 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. Western New England Bancorp has raised its dividend for 2 consecutive years. Western New England Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Finward Bancorp and Western New England Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$73.28 million	1.44	$8.38 million	$3.60	6.84
Western New England Bancorp	$112.01 million	1.26	$15.07 million	$0.60	10.87

Western New England Bancorp has higher revenue and earnings than Finward Bancorp. Finward Bancorp is trading at a lower price-to-earnings ratio than Western New England Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

26.6% of Finward Bancorp shares are owned by institutional investors. Comparatively, 68.0% of Western New England Bancorp shares are owned by institutional investors. 13.7% of Finward Bancorp shares are owned by insiders. Comparatively, 5.8% of Western New England Bancorp shares are owned by 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.

Profitability

This table compares Finward Bancorp and Western New England Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	14.11%	11.47%	0.73%
Western New England Bancorp	11.10%	5.44%	0.50%

Volatility and Risk

Finward Bancorp has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Finward Bancorp and Western New England Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	0	0	N/A
Western New England Bancorp	0	2	1	0	2.33

Western New England Bancorp has a consensus price target of $7.50, suggesting a potential upside of 15.03%. Given Western New England Bancorp’s higher possible upside, analysts clearly believe Western New England Bancorp is more favorable than Finward Bancorp.

Summary

Western New England Bancorp beats Finward Bancorp on 9 of the 16 factors compared between the two stocks.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.