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

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

Volatility & Risk

Bancorp has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Bridgewater Bancshares has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Profitability

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

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

Institutional & Insider Ownership

96.2% of Bancorp shares are held by institutional investors. Comparatively, 65.8% of Bridgewater Bancshares shares are held by institutional investors. 6.0% of Bancorp 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, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$879.70 million	2.35	$228.21 million	$5.32	9.51
Bridgewater Bancshares	$292.76 million	1.98	$46.09 million	$1.84	11.29

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.

Analyst Recommendations

This is a summary of recent recommendations for Bancorp and Bridgewater Bancshares, as reported by MarketBeat.

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

Bancorp presently has a consensus price target of $69.33, suggesting a potential upside of 37.08%. Bridgewater Bancshares has a consensus price target of $23.67, suggesting a potential upside of 13.95%. Given Bancorp’s higher probable upside, equities analysts plainly believe Bancorp is more favorable than Bridgewater Bancshares.

Summary

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

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.

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.