Bridgewater Bancshares (NASDAQ:BWB) versus NatWest Group (OTCMKTS:RBSPF) Financial Survey

NatWest Group (OTCMKTS:RBSPF) and Bridgewater Bancshares (NASDAQ:BWB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares NatWest Group and Bridgewater Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NatWest Group	20.10%	14.01%	0.82%
Bridgewater Bancshares	18.38%	11.21%	0.95%

Insider and Institutional Ownership

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

Volatility and Risk

NatWest Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Bridgewater Bancshares has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for NatWest Group and Bridgewater Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NatWest Group	0	0	1	0	3.00
Bridgewater Bancshares	0	0	4	0	3.00

Bridgewater Bancshares has a consensus price target of $23.67, suggesting a potential upside of 17.39%. Given Bridgewater Bancshares’ higher possible upside, analysts plainly believe Bridgewater Bancshares is more favorable than NatWest Group.

Earnings & Valuation

This table compares NatWest Group and Bridgewater Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NatWest Group	$38.91 billion	1.81	$7.69 billion	$1.00	8.77
Bridgewater Bancshares	$292.76 million	1.92	$46.09 million	$1.84	10.96

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

Summary

Bridgewater Bancshares beats NatWest Group on 8 of the 13 factors compared between the two stocks.

About NatWest Group

NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Private Banking, and Commercial & Institutional segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services. The Private Banking segment provides private banking and wealth management products for high-net-worth individuals and their business interests. The Commercial & Institutional segment offers banking and financial solutions to large corporate organisations, multi-nationals, and financial institutions. The company was formerly known as The Royal Bank of Scotland Group plc and changed its name to NatWest Group plc in July 2020. NatWest Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

About Bridgewater Bancshares

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.