ChoiceOne Financial Services (NASDAQ:COFS – Get Free Report) and Bridgewater Bancshares (NASDAQ:BWB – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Risk and Volatility
ChoiceOne Financial Services has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Bridgewater Bancshares has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
Valuation & Earnings
This table compares ChoiceOne Financial Services and Bridgewater Bancshares”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ChoiceOne Financial Services | $103.15 million | 4.35 | $26.73 million | $1.23 | 24.35 |
| Bridgewater Bancshares | $113.88 million | 3.68 | $32.83 million | $1.10 | 13.90 |
Bridgewater Bancshares has higher revenue and earnings than ChoiceOne Financial Services. Bridgewater Bancshares is trading at a lower price-to-earnings ratio than ChoiceOne Financial Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ChoiceOne Financial Services and Bridgewater Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ChoiceOne Financial Services | 19.21% | 12.44% | 1.04% |
| Bridgewater Bancshares | 12.96% | 8.85% | 0.71% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for ChoiceOne Financial Services and Bridgewater Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ChoiceOne Financial Services | 0 | 0 | 3 | 0 | 3.00 |
| Bridgewater Bancshares | 0 | 0 | 2 | 0 | 3.00 |
ChoiceOne Financial Services presently has a consensus target price of $37.00, indicating a potential upside of 23.54%. Bridgewater Bancshares has a consensus target price of $18.00, indicating a potential upside of 17.72%. Given ChoiceOne Financial Services’ higher possible upside, equities analysts clearly believe ChoiceOne Financial Services is more favorable than Bridgewater Bancshares.
Institutional & Insider Ownership
19.9% of ChoiceOne Financial Services shares are owned by institutional investors. Comparatively, 65.8% of Bridgewater Bancshares shares are owned by institutional investors. 5.9% of ChoiceOne Financial Services shares are owned by insiders. Comparatively, 23.3% of Bridgewater Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
ChoiceOne Financial Services beats Bridgewater Bancshares on 8 of the 13 factors compared between the two stocks.
About ChoiceOne Financial Services
ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial lending products, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers alternative investment products, which include annuities and mutual funds; and sells insurance policies, such as life and health for commercial and consumer clients. Further, it provides trust and wealth management services. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.
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.
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