Financial Analysis: SR Bancorp (NASDAQ:SRBK) and William Penn Bancorporation (NASDAQ:WMPN)

SR Bancorp (NASDAQ:SRBK) and William Penn Bancorporation (NASDAQ:WMPN) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for SR Bancorp and William Penn Bancorporation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	0	0	0	N/A
William Penn Bancorporation	0	0	1	0	3.00

William Penn Bancorporation has a consensus target price of $14.00, suggesting a potential upside of 23.57%. Given William Penn Bancorporation’s higher possible upside, analysts plainly believe William Penn Bancorporation is more favorable than SR Bancorp.

Earnings and Valuation

This table compares SR Bancorp and William Penn Bancorporation’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$14.78 million	6.04	N/A	N/A	N/A
William Penn Bancorporation	$32.34 million	3.31	$2.80 million	$0.09	125.89

William Penn Bancorporation has higher revenue and earnings than SR Bancorp.

Insider & Institutional Ownership

24.7% of SR Bancorp shares are held by institutional investors. Comparatively, 31.2% of William Penn Bancorporation shares are held by institutional investors. 8.1% of William Penn Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SR Bancorp and William Penn Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	N/A	-4.55%	-0.84%
William Penn Bancorporation	2.44%	0.35%	0.06%

Summary

William Penn Bancorporation beats SR Bancorp on 8 of the 9 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

About William Penn Bancorporation

William Penn Bancorporation operates as the holding company for William Penn Bank that provides retail and commercial banking products and related financial services in the United States. The company offers time, savings, money market, and demand deposits; certificates of deposit; and non-interest bearing and interest-bearing checking, as well as money market, NOW, savings and club, and individual retirement accounts. It also provides one- to four-family residential and investor commercial real estate, non-residential real estate, multi-family residential, commercial business and consumer, residential and commercial construction, and land loans, as well as home equity loans and lines of credit, small business loans, and commercial and mortgage loans; and invests in a portfolio of mortgage-backed securities. The company serves individuals, businesses, and government customers. It offers its services through full-service branch offices in Bucks and Philadelphia Counties, Pennsylvania; and Burlington, Camden, and Mercer Counties, New Jersey. William Penn Bancorporation was founded in 1870 and is headquartered in Bristol, Pennsylvania.