Head-To-Head Survey: Western New England Bancorp (NASDAQ:WNEB) vs. Commonwealth Bank of Australia (OTCMKTS:CMWAY)
by Mitch Edgeman · The Markets DailyWestern New England Bancorp (NASDAQ:WNEB – Get Free Report) and Commonwealth Bank of Australia (OTCMKTS:CMWAY – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.
Dividends
Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Commonwealth Bank of Australia pays an annual dividend of $3.17 per share and has a dividend yield of 2.6%. Western New England Bancorp pays out 36.8% of its earnings in the form of a dividend.
Volatility & Risk
Western New England Bancorp has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Commonwealth Bank of Australia has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Institutional and Insider Ownership
67.9% of Western New England Bancorp shares are owned by institutional investors. Comparatively, 0.0% of Commonwealth Bank of Australia shares are owned by institutional investors. 6.1% of Western New England Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Western New England Bancorp and Commonwealth Bank of Australia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Western New England Bancorp | 11.64% | 6.31% | 0.56% |
| Commonwealth Bank of Australia | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of current ratings and price targets for Western New England Bancorp and Commonwealth Bank of Australia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Western New England Bancorp | 0 | 2 | 1 | 1 | 2.75 |
| Commonwealth Bank of Australia | 1 | 0 | 0 | 1 | 2.50 |
Western New England Bancorp presently has a consensus target price of $14.00, indicating a potential upside of 5.90%. Commonwealth Bank of Australia has a consensus target price of $130.18, indicating a potential upside of 5.43%. Given Western New England Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Western New England Bancorp is more favorable than Commonwealth Bank of Australia.
Valuation & Earnings
This table compares Western New England Bancorp and Commonwealth Bank of Australia”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Western New England Bancorp | $82.61 million | 3.24 | $15.27 million | $0.76 | 17.39 |
| Commonwealth Bank of Australia | $61.51 billion | 3.36 | $6.55 billion | N/A | N/A |
Commonwealth Bank of Australia has higher revenue and earnings than Western New England Bancorp.
Summary
Western New England Bancorp beats Commonwealth Bank of Australia on 8 of the 14 factors compared between the two stocks.
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.
About Commonwealth Bank of Australia
Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.