Charter Financial Corp (Maryland) (NASDAQ: FCCY) and 1st Constitution Bancorp (NASDAQ:FCCY) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Charter Financial Corp (Maryland) and 1st Constitution Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Charter Financial Corp (Maryland) 19.70% 7.34% 0.98%
1st Constitution Bancorp 14.43% 9.71% 1.00%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Charter Financial Corp (Maryland) and 1st Constitution Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Charter Financial Corp (Maryland) 0 1 0 0 2.00
1st Constitution Bancorp 0 0 0 0 N/A

Charter Financial Corp (Maryland) currently has a consensus price target of $24.00, indicating a potential downside of 3.65%. Given Charter Financial Corp (Maryland)’s higher possible upside, equities research analysts plainly believe Charter Financial Corp (Maryland) is more favorable than 1st Constitution Bancorp.

Valuation & Earnings

This table compares Charter Financial Corp (Maryland) and 1st Constitution Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Charter Financial Corp (Maryland) $75.10 million 5.06 $14.43 million $0.95 26.22
1st Constitution Bancorp $49.90 million 3.39 $6.92 million $1.06 19.06

Charter Financial Corp (Maryland) has higher revenue and earnings than 1st Constitution Bancorp. 1st Constitution Bancorp is trading at a lower price-to-earnings ratio than Charter Financial Corp (Maryland), indicating that it is currently the more affordable of the two stocks.

Dividends

Charter Financial Corp (Maryland) pays an annual dividend of $0.34 per share and has a dividend yield of 1.4%. 1st Constitution Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Charter Financial Corp (Maryland) pays out 35.8% of its earnings in the form of a dividend. 1st Constitution Bancorp pays out 22.6% 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. Charter Financial Corp (Maryland) has increased its dividend for 2 consecutive years. Charter Financial Corp (Maryland) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

66.6% of Charter Financial Corp (Maryland) shares are held by institutional investors. Comparatively, 34.8% of 1st Constitution Bancorp shares are held by institutional investors. 12.1% of Charter Financial Corp (Maryland) shares are held by insiders. Comparatively, 14.6% of 1st Constitution 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.

Volatility and Risk

Charter Financial Corp (Maryland) has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, 1st Constitution Bancorp has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Summary

Charter Financial Corp (Maryland) beats 1st Constitution Bancorp on 9 of the 15 factors compared between the two stocks.

Charter Financial Corp (Maryland) Company Profile

Charter Financial Corporation operates as the holding company for CharterBank, a federally-chartered savings bank that provides various banking products and services to individuals and businesses in the United States. The company's deposit products include checking, money market, regular savings, and term certificate accounts, as well as noninterest-bearing demand deposits. It also offers commercial real estate loans, one- to four-family residential mortgage loans, construction loans, and investment securities; and commercial business loans, home equity loans, and lines of credit, as well as other consumer loans, including loans on deposits, automobile loans, mobile home loans, and various other installment loans. In addition, the company provides various community banking services, such as online banking and bill payment services, mobile banking, online cash management, safe deposit box rentals, and debit and ATM card services. It operates through a network of 22 branch offices in Metro Atlanta, the I-85 corridor south to Auburn, Alabama, and the Florida Gulf Coast. The company was founded in 1954 and is based in West Point, Georgia.

1st Constitution Bancorp Company Profile

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central and northeastern New Jersey areas. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and NOW accounts; and non-interest bearing demand, savings, and time deposits, as well as certificates of deposit. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of December 31, 2017, the company operated through 17 branch offices, as well as 2 residential mortgage loan production offices in New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.

Receive News & Ratings for Charter Financial Corp (Maryland) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Charter Financial Corp (Maryland) and related companies with MarketBeat.com's FREE daily email newsletter.