Washington Trust Bancorp (NASDAQ:WASH – Get Free Report) and Bankwell Financial Group (NASDAQ:BWFG – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.
Valuation and Earnings
This table compares Washington Trust Bancorp and Bankwell Financial Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Washington Trust Bancorp | $393.95 million | 1.64 | $52.24 million | $2.73 | 12.44 |
| Bankwell Financial Group | $114.98 million | 3.73 | $35.20 million | $4.98 | 10.82 |
Insider and Institutional Ownership
65.8% of Washington Trust Bancorp shares are held by institutional investors. Comparatively, 35.8% of Bankwell Financial Group shares are held by institutional investors. 1.3% of Washington Trust Bancorp shares are held by company insiders. Comparatively, 21.0% of Bankwell Financial Group 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 Washington Trust Bancorp and Bankwell Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Washington Trust Bancorp | 13.71% | 9.79% | 0.79% |
| Bankwell Financial Group | 18.71% | 13.31% | 1.20% |
Analyst Ratings
This is a breakdown of recent recommendations for Washington Trust Bancorp and Bankwell Financial Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Washington Trust Bancorp | 1 | 2 | 1 | 0 | 2.00 |
| Bankwell Financial Group | 0 | 2 | 2 | 0 | 2.50 |
Washington Trust Bancorp presently has a consensus price target of $33.00, suggesting a potential downside of 2.80%. Bankwell Financial Group has a consensus price target of $52.00, suggesting a potential downside of 3.46%. Given Washington Trust Bancorp’s higher possible upside, equities analysts plainly believe Washington Trust Bancorp is more favorable than Bankwell Financial Group.
Dividends
Washington Trust Bancorp pays an annual dividend of $2.24 per share and has a dividend yield of 6.6%. Bankwell Financial Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. Washington Trust Bancorp pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bankwell Financial Group pays out 16.1% of its earnings in the form of a dividend.
Risk and Volatility
Washington Trust Bancorp has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Bankwell Financial Group has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.
Summary
Bankwell Financial Group beats Washington Trust Bancorp on 9 of the 16 factors compared between the two stocks.
About Washington Trust Bancorp
Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents’ estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.
About Bankwell Financial Group
Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides various banking services for individual and commercial customers. It offers various traditional depository products, including checking, savings, money market, and certificates of deposit. The company also provides first mortgage loans secured by one-to-four family owner occupied residential properties for personal use; home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties; loans secured by commercial real estate, multi-family dwellings, owner-occupied commercial real estate, and investor-owned one-to-four family dwellings; commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail, and other income producing properties; land loans; commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners; loans to finance insurance premiums; overdraft lines of credit; and unsecured personal loans. It operates branches in New Canaan, Stamford, Fairfield, Westport, Darien, Norwalk, and Hamden, Connecticut. The company was formerly known as BNC Financial Group, Inc. and changed its name to Bankwell Financial Group, Inc. in September 2013. Bankwell Financial Group, Inc. was founded in 2002 and is headquartered in New Canaan, Connecticut.
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