First Interstate BancSystem (NASDAQ:FIBK) versus Bridgewater Bancshares (NASDAQ:BWB) Head to Head Comparison

First Interstate BancSystem (NASDAQ:FIBK) and Bridgewater Bancshares (NASDAQ:BWB) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for First Interstate BancSystem and Bridgewater Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Interstate BancSystem	3	3	2	0	1.88
Bridgewater Bancshares	0	1	4	0	2.80

First Interstate BancSystem currently has a consensus target price of $36.83, suggesting a potential downside of 0.50%. Bridgewater Bancshares has a consensus target price of $23.67, suggesting a potential upside of 10.68%. Given Bridgewater Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Bridgewater Bancshares is more favorable than First Interstate BancSystem.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Interstate BancSystem	$1.41 billion	2.50	$302.10 million	$3.25	11.39
Bridgewater Bancshares	$292.76 million	2.04	$46.09 million	$1.84	11.62

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

Insider & Institutional Ownership

88.7% of First Interstate BancSystem shares are held by institutional investors. Comparatively, 65.8% of Bridgewater Bancshares shares are held by institutional investors. 8.0% of First Interstate BancSystem shares are held by company insiders. Comparatively, 23.1% of Bridgewater Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Interstate BancSystem	23.63%	9.55%	1.22%
Bridgewater Bancshares	18.38%	11.21%	0.95%

Volatility & Risk

First Interstate BancSystem has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Bridgewater Bancshares has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Summary

First Interstate BancSystem beats Bridgewater Bancshares on 8 of the 14 factors compared between the two stocks.

About First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.

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.