Head to Head Analysis: Wintrust Financial (WTFC) vs. Berkshire Bancorp (BERK)

Head to Head Analysis: Wintrust Financial (WTFC) vs. Berkshire Bancorp (BERK)

Wintrust Financial (NASDAQ:WTFC) and Berkshire Bancorp (OTCMKTS:BERK) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

88.0% of Wintrust Financial shares are held by institutional investors. Comparatively, 0.8% of Berkshire Bancorp shares are held by institutional investors. 1.6% of Wintrust Financial shares are held by insiders. Comparatively, 70.4% of Berkshire Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Wintrust Financial and Berkshire Bancorp’s top-line revenue, earnings per share and valuation.

Wintrust Financial has higher revenue and earnings than Berkshire Bancorp.

Profitability

This table compares Wintrust Financial and Berkshire Bancorp’s net margins, return on equity and return on assets.

Volatility & Risk

Wintrust Financial has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Berkshire Bancorp has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Wintrust Financial and Berkshire Bancorp, as provided by MarketBeat.com.

Wintrust Financial currently has a consensus price target of $96.11, indicating a potential upside of 36.97%. Given Wintrust Financial’s higher possible upside, research analysts plainly believe Wintrust Financial is more favorable than Berkshire Bancorp.

Dividends

Wintrust Financial pays an annual dividend of $0.76 per share and has a dividend yield of 1.1%. Berkshire Bancorp does not pay a dividend. Wintrust Financial pays out 17.3% of its earnings in the form of a dividend. Wintrust Financial has raised its dividend for 5 consecutive years.

Summary

Wintrust Financial beats Berkshire Bancorp on 12 of the 15 factors compared between the two stocks.

About Wintrust Financial

Wintrust Financial Corporation operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), Internet banking, and other services. It also engages in the origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and cash management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional customers. The Specialty Finance segment offers commercial and life insurance premiums for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing service clients. The Wealth Management segment provides trust and investment, asset management, securities brokerage, and retirement plan services. As of December 31, 2017, the company had approximately 157 banking facilities and 212 ATMs. Wintrust Financial Corporation was founded in 1992 and is headquartered in Rosemont, Illinois.

About Berkshire Bancorp

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers various deposit products, including statement savings accounts, NOW accounts, money market deposits accounts, checking accounts, and certificates of deposit. Its loan portfolio comprises commercial mortgage loans secured by office buildings, retail establishments, multi-family residential real estate, and other types of commercial property; commercial loans offered to businesses for inventory financing, working capital, machinery and equipment purchases, expansion, and other business purposes; and residential mortgage loans secured by first liens on one-to-four family owner-occupied or rental residential real estate, as well as residential single family construction loans, home equity loans and lines of credit, and short-term fixed-rate consumer loans. The company also offers title insurance agency services; and acts as a qualified intermediary in connection with tax free exchanges under Section 1031 of the Internal Revenue Code of 1986. It operates through seven deposit-taking offices in New York City; four deposit-taking offices in Orange and Sullivan counties, New York; and one deposit taking office in Teaneck, New Jersey. The company was founded in 1979 and is based in New York, New York.

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