BankUnited (NYSE:BKU – Get Rating) and Wayne Savings Bancshares (OTCMKTS:WAYN – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Profitability
This table compares BankUnited and Wayne Savings Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BankUnited | 21.78% | 11.08% | 0.78% |
| Wayne Savings Bancshares | 31.54% | 20.19% | 1.35% |
Valuation & Earnings
This table compares BankUnited and Wayne Savings Bancshares’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BankUnited | $1.31 billion | 1.23 | $284.97 million | $3.55 | 6.05 |
| Wayne Savings Bancshares | $28.55 million | 2.09 | $9.00 million | $3.95 | 6.86 |
Dividends
BankUnited pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. Wayne Savings Bancshares pays an annual dividend of $0.92 per share and has a dividend yield of 3.4%. BankUnited pays out 28.2% of its earnings in the form of a dividend. Wayne Savings Bancshares pays out 23.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BankUnited has increased its dividend for 2 consecutive years. BankUnited is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
12.3% of Wayne Savings Bancshares shares are held by institutional investors. 0.9% of BankUnited shares are held by insiders. Comparatively, 3.2% of Wayne Savings Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
BankUnited has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Wayne Savings Bancshares has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for BankUnited and Wayne Savings Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BankUnited | 3 | 3 | 1 | 0 | 1.71 |
| Wayne Savings Bancshares | 0 | 0 | 0 | 0 | N/A |
BankUnited presently has a consensus price target of $34.13, indicating a potential upside of 58.79%. Given BankUnited’s higher possible upside, analysts clearly believe BankUnited is more favorable than Wayne Savings Bancshares.
Summary
Wayne Savings Bancshares beats BankUnited on 9 of the 16 factors compared between the two stocks.
About BankUnited
BankUnited, Inc. is a holding company, which engages in the provision of commercial and consumer banking services through its subsidiary, BankUnited, N.A.. Its services include corporate banking, commercial real estate, treasury management, business checking accounts, business online banking solutions, and home mortgages. The company was founded on May 21, 2009 and is headquartered in Miami Lakes, FL.
About Wayne Savings Bancshares
Wayne Savings Bancshares, Inc. is a holding company, which engages in the provision of financial services. It offers checking, savings, money market, home loans, and financial planning. The company was founded on August 5, 1997 and is headquartered Wooster, OH.
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