Critical Survey: Wake Forest Bancshares (WAKE) versus The Competition

Posted by on Jun 22nd, 2023

Wake Forest Bancshares (OTCMKTS:WAKE – Get Rating) is one of 213 publicly-traded companies in the “Banks—Regional” industry, but how does it weigh in compared to its peers? We will compare Wake Forest Bancshares to similar businesses based on the strength of its institutional ownership, profitability, risk, earnings, analyst recommendations, valuation and dividends.

Profitability

This table compares Wake Forest Bancshares and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wake Forest Bancshares N/A N/A N/A
Wake Forest Bancshares Competitors 37.83% 8.70% 0.76%

Valuation and Earnings

This table compares Wake Forest Bancshares and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wake Forest Bancshares N/A N/A 15.66
Wake Forest Bancshares Competitors $2.79 billion $680.11 million 372.10

Wake Forest Bancshares’ peers have higher revenue and earnings than Wake Forest Bancshares. Wake Forest Bancshares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

32.2% of shares of all “Banks—Regional” companies are owned by institutional investors. 7.1% of Wake Forest Bancshares shares are owned by company insiders. Comparatively, 16.2% of shares of all “Banks—Regional” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Wake Forest Bancshares and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wake Forest Bancshares 0 0 0 0 N/A
Wake Forest Bancshares Competitors 984 2755 2730 5 2.27

As a group, “Banks—Regional” companies have a potential upside of 510.76%. Given Wake Forest Bancshares’ peers higher possible upside, analysts plainly believe Wake Forest Bancshares has less favorable growth aspects than its peers.

Dividends

Wake Forest Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 2.5%. Wake Forest Bancshares pays out 39.4% of its earnings in the form of a dividend. As a group, “Banks—Regional” companies pay a dividend yield of 11.8% and pay out 15.2% of their earnings in the form of a dividend. Wake Forest Bancshares lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Wake Forest Bancshares peers beat Wake Forest Bancshares on 10 of the 10 factors compared.

Wake Forest Bancshares Company Profile

(Get Rating)

Wake Forest Bancshares, Inc., (OTC: WAKE) parent company of Wake Forest Federal Savings and Loan Association. Based in Wake Forest, North Carolina since 1922, the Company conducts business as Wake Forest Federal from its office in Wake Forest, (Wake County), North Carolina. Wake Forest Bancshares, Inc. operates as a subsidiary of Wake Forest Bancorp, M.H.C.

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