Washington Trust Bancorp (NASDAQ:WASH – Get Free Report) and Summit State Bank (NASDAQ:SSBI – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Washington Trust Bancorp and Summit State Bank”s 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 | 1.92 | $52.24 million | $2.88 | 13.79 |
| Summit State Bank | $37.09 million | 2.34 | $6.80 million | $0.34 | 37.65 |
Insider and Institutional Ownership
65.8% of Washington Trust Bancorp shares are owned by institutional investors. 1.3% of Washington Trust Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Washington Trust Bancorp and Summit State Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Washington Trust Bancorp | 14.50% | 10.18% | 0.84% |
| Summit State Bank | 3.87% | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Washington Trust Bancorp and Summit State Bank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Washington Trust Bancorp | 0 | 3 | 1 | 0 | 2.25 |
| Summit State Bank | 0 | 1 | 0 | 0 | 2.00 |
Washington Trust Bancorp presently has a consensus price target of $35.50, suggesting a potential downside of 10.62%. Given Washington Trust Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Washington Trust Bancorp is more favorable than Summit State Bank.
Risk & Volatility
Washington Trust Bancorp has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Summit State Bank has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.
Dividends
Washington Trust Bancorp pays an annual dividend of $2.24 per share and has a dividend yield of 5.6%. Summit State Bank pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. Washington Trust Bancorp pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit State Bank pays out 47.1% of its earnings in the form of a dividend.
Summary
Washington Trust Bancorp beats Summit State Bank on 13 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 Summit State Bank
Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.
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