Critical Survey: Bancorp (NASDAQ:TBBK) versus Bridgewater Bancshares (NASDAQ:BWB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bridgewater Bancshares	18.38%	11.21%	0.95%
Bancorp	27.72%	32.32%	2.50%

Analyst Recommendations

This is a breakdown of current ratings for Bridgewater Bancshares and Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgewater Bancshares	0	0	4	0	3.00
Bancorp	0	2	4	1	2.86

Bridgewater Bancshares presently has a consensus target price of $23.67, suggesting a potential upside of 14.28%. Bancorp has a consensus target price of $69.33, suggesting a potential upside of 42.05%. Given Bancorp’s higher probable upside, analysts clearly believe Bancorp is more favorable than Bridgewater Bancshares.

Institutional and Insider Ownership

65.8% of Bridgewater Bancshares shares are owned by institutional investors. Comparatively, 96.2% of Bancorp shares are owned by institutional investors. 23.1% of Bridgewater Bancshares shares are owned by insiders. Comparatively, 6.0% of Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Bridgewater Bancshares has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgewater Bancshares	$161.17 million	3.58	$46.09 million	$1.84	11.26
Bancorp	$879.70 million	2.26	$228.21 million	$5.32	9.17

Bancorp has higher revenue and earnings than Bridgewater Bancshares. Bancorp 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

Bancorp beats Bridgewater Bancshares on 10 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 Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.