Comparing Webster Financial (WBS) and Chesapeake Financial Shares (CPKF) – Which is the Better Investment?
Title: Webster Financial vs. Chesapeake Financial Shares: A Comparison of Finance Companies
In the world of finance, Webster Financial (NYSE:WBS) and Chesapeake Financial Shares (OTCMKTS:CPKF) are two prominent players vying for investors’ attention. But which of these companies is the better investment option? Let’s delve into a detailed comparison to find out.
Valuation & Earnings:
When it comes to revenue and earnings, Webster Financial outshines Chesapeake Financial Shares with higher figures. However, Chesapeake Financial Shares boasts a lower price-to-earnings ratio, making it a more affordable stock option.
Dividends:
Webster Financial offers an annual dividend of $1.60 per share with a yield of 3.4%, while Chesapeake Financial Shares provides a dividend of $0.62 per share with a yield of 3.6%. Despite both companies having healthy payout ratios, Chesapeake Financial Shares emerges as the better dividend stock due to its higher yield and lower payout ratio.
Insider and Institutional Ownership:
Webster Financial has a significantly higher institutional ownership at 85.6% compared to Chesapeake Financial Shares’ 3.7%. Additionally, Chesapeake Financial Shares has a higher insider ownership at 39.5%. Strong institutional ownership is often seen as a positive indicator for long-term growth potential.
Profitability:
In terms of net margins, return on equity, and return on assets, Webster Financial surpasses Chesapeake Financial Shares, showcasing stronger profitability metrics.
Risk and Volatility:
Webster Financial exhibits higher volatility with a beta of 1.3, while Chesapeake Financial Shares has a lower beta of 0.5, indicating lower volatility in its share price.
Analyst Recommendations:
MarketBeat.com’s ratings reveal that Webster Financial has a consensus target price of $55.50, suggesting a potential upside of 19.20%. Analysts favor Webster Financial over Chesapeake Financial Shares due to its higher probable upside.
In summary, Webster Financial outperforms Chesapeake Financial Shares on 12 out of 15 factors compared between the two companies. With its stronger financial metrics and analyst favorability, Webster Financial emerges as the more favorable investment option.
About Webster Financial:
Webster Financial Corporation operates as a bank holding company providing a range of financial products and services in the United States. The company offers commercial banking, HSA bank, and consumer banking services.
About Chesapeake Financial Shares:
Chesapeake Financial Shares, Inc. operates as a bank holding company for Chesapeake Bank, offering various banking products and services for individuals and businesses in the United States.
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