Comparing Bridgewater Bancshares (NASDAQ:BWB) & First Bank (NASDAQ:FRBA)

Bridgewater Bancshares (NASDAQ:BWB) and First Bank (NASDAQ:FRBA) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Risk & Volatility

Bridgewater Bancshares has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, First Bank has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bridgewater Bancshares	19.27%	11.60%	1.00%
First Bank	17.73%	9.58%	1.07%

Analyst Ratings

This is a breakdown of current recommendations for Bridgewater Bancshares and First Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgewater Bancshares	0	0	4	0	3.00
First Bank	0	2	3	0	2.60

Bridgewater Bancshares presently has a consensus target price of $23.67, indicating a potential upside of 14.78%. First Bank has a consensus target price of $19.67, indicating a potential downside of 2.06%. Given Bridgewater Bancshares’ stronger consensus rating and higher probable upside, research analysts plainly believe Bridgewater Bancshares is more favorable than First Bank.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgewater Bancshares	$292.76 million	1.96	$46.09 million	$1.95	10.57
First Bank	$245.83 million	2.05	$43.66 million	$1.71	11.74

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

Institutional and Insider Ownership

65.8% of Bridgewater Bancshares shares are held by institutional investors. Comparatively, 64.9% of First Bank shares are held by institutional investors. 23.1% of Bridgewater Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Bridgewater Bancshares beats First Bank on 11 of the 14 factors compared between the two stocks.

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.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.