West Bancorporation (NASDAQ:WTBA) vs. Bridgewater Bancshares (NASDAQ:BWB) Head-To-Head Analysis

by · The Markets Daily

Bridgewater Bancshares (NASDAQ:BWB – Get Free Report) and West Bancorporation (NASDAQ:WTBA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares Bridgewater Bancshares and West Bancorporation”s revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Bridgewater Bancshares$292.76 million1.96$46.09 million$1.8411.20
West Bancorporation$202.45 million2.55$32.56 million$2.2313.59

Bridgewater Bancshares has higher revenue and earnings than West Bancorporation. Bridgewater Bancshares is trading at a lower price-to-earnings ratio than West Bancorporation, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Bridgewater Bancshares has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Bridgewater Bancshares and West Bancorporation, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Bridgewater Bancshares00403.00
West Bancorporation03102.25

Bridgewater Bancshares currently has a consensus price target of $23.67, indicating a potential upside of 14.89%. West Bancorporation has a consensus price target of $29.00, indicating a potential downside of 4.29%. Given Bridgewater Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Bridgewater Bancshares is more favorable than West Bancorporation.

Insider and Institutional Ownership

65.8% of Bridgewater Bancshares shares are held by institutional investors. Comparatively, 44.3% of West Bancorporation shares are held by institutional investors. 23.1% of Bridgewater Bancshares shares are held by company insiders. Comparatively, 4.6% of West Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Bridgewater Bancshares and West Bancorporation’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Bridgewater Bancshares19.27%11.66%1.01%
West Bancorporation18.75%15.48%1.03%

Summary

Bridgewater Bancshares beats West Bancorporation on 8 of the 14 factors compared between the two stocks.

About Bridgewater Bancshares

(Get Free Report)

Bridgewater Bancshares, Inc. operates as the bank holding company for Bridgewater Bank that provides banking products and services to commercial real estate investors, entrepreneurs, business clients, and individuals in the United States. The company provides savings and money market accounts, demand deposits, time and brokered deposits, and interest and noninterest bearing transaction, as well as certificates of deposit. It offers commercial loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance working capital, capital investment, or for other business related purposes; paycheck protection program loans; construction and land development loans; 1-4 family mortgage loans; multifamily lending products; owner and non-owner occupied commercial real estate loans; and consumer and other loans. In addition, the company online, mobile, and direct banking services. Bridgewater Bancshares, Inc. was incorporated in 2005 and is headquartered in Saint Louis Park, Minnesota.

About West Bancorporation

(Get Free Report)

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.