Meridian Bank (NASDAQ:MRBK) and WCF Bancorp (OTCMKTS:WCFB) Financial Survey
by Renee Jackson · The Cerbat GemWCF Bancorp (OTCMKTS:WCFB – Get Free Report) and Meridian Bank (NASDAQ:MRBK – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Insider & Institutional Ownership
58.6% of Meridian Bank shares are held by institutional investors. 0.8% of WCF Bancorp shares are held by company insiders. Comparatively, 14.4% of Meridian Bank shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for WCF Bancorp and Meridian Bank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WCF Bancorp | 0 | 0 | 0 | 0 | 0.00 |
| Meridian Bank | 0 | 0 | 3 | 0 | 3.00 |
Meridian Bank has a consensus price target of $22.00, indicating a potential upside of 15.24%. Given Meridian Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Meridian Bank is more favorable than WCF Bancorp.
Profitability
This table compares WCF Bancorp and Meridian Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WCF Bancorp | N/A | N/A | N/A |
| Meridian Bank | 10.63% | 11.81% | 0.86% |
Volatility & Risk
WCF Bancorp has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Meridian Bank has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
Valuation and Earnings
This table compares WCF Bancorp and Meridian Bank”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WCF Bancorp | $11.85 million | 0.96 | -$40,000.00 | N/A | N/A |
| Meridian Bank | $205.49 million | 1.10 | $21.84 million | $1.89 | 10.10 |
Meridian Bank has higher revenue and earnings than WCF Bancorp.
Summary
Meridian Bank beats WCF Bancorp on 12 of the 12 factors compared between the two stocks.
About WCF Bancorp
WCF Bancorp, Inc. operates as the bank holding company for WCF Financial Bank that provides commercial banking products and services to individuals and businesses. The company offers checking and saving accounts; certificates of deposit; personal, mortgage, business, agricultural, and commercial real estate loans; debit and credit cards; and other products. It operates through full-service offices in Webster City, Independence, and Tama, Iowa. The company was founded in 1934 and is based in Webster City, Iowa.
About Meridian Bank
Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, Florida, and Maryland. The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits. It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, shared national credits, and other financing; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services. In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services, as well as financial planning and wealth management services. Meridian Corporation was incorporated in 2004 and is headquartered in Malvern, Pennsylvania.