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

Profitability

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

Net Margins Return on Equity Return on Assets
First Bancorp 11.06% 6.36% 0.95%
Bridgewater Bancshares N/A N/A N/A

Insider & Institutional Ownership

88.5% of First Bancorp shares are held by institutional investors. Comparatively, 33.1% of Bridgewater Bancshares shares are held by institutional investors. 2.1% of First Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares First Bancorp and Bridgewater Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Bancorp $650.81 million 3.06 $66.95 million $0.50 18.34
Bridgewater Bancshares N/A N/A N/A N/A N/A

First Bancorp has higher revenue and earnings than Bridgewater Bancshares.

Analyst Ratings

This is a breakdown of recent ratings and price targets for First Bancorp and Bridgewater Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Bancorp 0 0 5 0 3.00
Bridgewater Bancshares 0 0 2 0 3.00

First Bancorp currently has a consensus price target of $9.70, suggesting a potential upside of 5.78%. Bridgewater Bancshares has a consensus price target of $15.25, suggesting a potential upside of 14.23%. Given Bridgewater Bancshares’ higher possible upside, analysts plainly believe Bridgewater Bancshares is more favorable than First Bancorp.

Summary

First Bancorp beats Bridgewater Bancshares on 7 of the 8 factors compared between the two stocks.

About First Bancorp

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to retail, commercial, and institutional clients. It operates through six segments: Commercial and Corporate Banking, Consumer (Retail) Banking, Mortgage Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial real estate and construction loans, floor plan financing, and cash and business management services, as well as investment banking services. The Consumer (Retail) Banking segment provides auto, boat, and personal loans; credit cards; lines of credit; and deposit products comprising interest bearing and non-interest bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs), as well as engages in the finance leasing and insurance activities. The Mortgage Banking segment is involved in the origination, sale, and servicing of various residential mortgage loan products and related hedging activities; and acquisition and sale of mortgages in the secondary markets. The Treasury and Investments segment engages in the treasury and investment management activities, such as funding and liquidity management. The United States Operations segment offers checking, savings, and money market accounts; and residential mortgages, home equity loans, lines of credit, and automobile loans, as well as retail CDs, Internet banking services, cash management, remote data capture, automated clearing house transactions, and term loans. The Virgin Islands Operations segment is involved in the consumer, commercial lending, and deposit-taking activities. As of December 31, 2017, the company operated 45 branches in Puerto Rico, 11 branches in the U.S. Virgin Islands and British Virgin Islands, and 11 branches in the state of Florida. The company was founded in 1948 and is headquartered in Santurce, Puerto Rico.

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, small business entrepreneurs, and high-net-worth individuals in the United States. It offers saving and money market, time, interest and noninterest bearing transaction, and brokered deposits. The company also provides commercial loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance accounts receivable or inventory, capital assets, or other business related purposes; 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. It operates through six branches in Minnesota. The company was founded in 2005 and is headquartered in Bloomington, Minnesota.

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