Critical Analysis: Camden National (NASDAQ:CAC) vs. WCF Bancorp (OTCMKTS:WCFB)

WCF Bancorp (OTCMKTS:WCFB) and Camden National (NASDAQ:CAC) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Valuation and Earnings

This table compares WCF Bancorp and Camden National”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WCF Bancorp	$12.05 million	0.96	-$2.28 million	N/A	N/A
Camden National	$373.18 million	2.62	$65.16 million	$5.22	11.09

Camden National has higher revenue and earnings than WCF Bancorp.

Profitability

This table compares WCF Bancorp and Camden National’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
Camden National	23.64%	12.73%	1.27%

Risk and Volatility

WCF Bancorp has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Camden National has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

77.4% of Camden National shares are held by institutional investors. 0.8% of WCF Bancorp shares are held by insiders. Comparatively, 2.1% of Camden National shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for WCF Bancorp and Camden National, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WCF Bancorp	0	0	0	0	0.00
Camden National	0	4	2	0	2.33

Camden National has a consensus target price of $55.25, suggesting a potential downside of 4.56%. Given Camden National’s stronger consensus rating and higher probable upside, analysts clearly believe Camden National is more favorable than WCF Bancorp.

Summary

Camden National 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 Camden National

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.