Financial Comparison: Flagstar Financial (NYSE:FLG) & William Penn Bancorporation (NASDAQ:WMPN)

William Penn Bancorporation (NASDAQ:WMPN) and Flagstar Financial (NYSE:FLG) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

William Penn Bancorporation pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Flagstar Financial pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. William Penn Bancorporation pays out -100.0% of its earnings in the form of a dividend. Flagstar Financial pays out -1.1% 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. William Penn Bancorporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

William Penn Bancorporation has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500. Comparatively, Flagstar Financial has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

31.2% of William Penn Bancorporation shares are owned by institutional investors. Comparatively, 67.9% of Flagstar Financial shares are owned by institutional investors. 9.2% of William Penn Bancorporation shares are owned by insiders. Comparatively, 6.4% of Flagstar Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
William Penn Bancorporation	-2.90%	-0.65%	-0.10%
Flagstar Financial	-17.16%	-10.72%	-0.76%

Valuation & Earnings

This table compares William Penn Bancorporation and Flagstar Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
William Penn Bancorporation	$19.14 million	5.47	$170,000.00	($0.12)	-94.75
Flagstar Financial	$2.60 billion	1.83	-$1.09 billion	($3.69)	-3.11

William Penn Bancorporation has higher earnings, but lower revenue than Flagstar Financial. William Penn Bancorporation is trading at a lower price-to-earnings ratio than Flagstar Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for William Penn Bancorporation and Flagstar Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
William Penn Bancorporation	0	0	0	0	0.00
Flagstar Financial	0	3	2	0	2.40

Flagstar Financial has a consensus target price of $12.90, suggesting a potential upside of 12.47%. Given Flagstar Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Flagstar Financial is more favorable than William Penn Bancorporation.

Summary

William Penn Bancorporation beats Flagstar Financial on 9 of the 16 factors compared between the two stocks.

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, savings and club, and individual retirement accounts. It also provides one- to four-family residential and investor commercial real estate, commercial non-residential real estate, multi-family residential, residential and commercial construction, commercial business and consumer, and land loans, as well as home equity loans and lines of credit, 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 in Pennsylvania; and Burlington, Camden, and Mercer Counties in New Jersey. William Penn Bancorporation was founded in 1870 and is headquartered in Bristol, Pennsylvania.

About Flagstar Financial

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.