Waterstone Financial (NASDAQ: WSBF) is one of 306 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Waterstone Financial to similar businesses based on the strength of its analyst recommendations, valuation, dividends, institutional ownership, risk, earnings and profitability.

Risk and Volatility

Waterstone Financial has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Waterstone Financial’s rivals have a beta of 0.80, meaning that their average share price is 20% less volatile than the S&P 500.

Dividends

Waterstone Financial pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Waterstone Financial pays out 45.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.5% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Waterstone Financial and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waterstone Financial 0 1 0 0 2.00
Waterstone Financial Competitors 2376 8696 8531 355 2.34

Waterstone Financial currently has a consensus price target of $19.00, suggesting a potential upside of 7.04%. As a group, “Banks” companies have a potential downside of 9.67%. Given Waterstone Financial’s higher possible upside, analysts plainly believe Waterstone Financial is more favorable than its rivals.

Valuation and Earnings

This table compares Waterstone Financial and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Waterstone Financial $190.10 million $25.53 million 16.90
Waterstone Financial Competitors $5.24 billion $664.46 million 406.30

Waterstone Financial’s rivals have higher revenue and earnings than Waterstone Financial. Waterstone Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Waterstone Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waterstone Financial 15.14% 7.11% 1.61%
Waterstone Financial Competitors 18.27% 8.33% 0.94%

Institutional & Insider Ownership

59.7% of Waterstone Financial shares are held by institutional investors. Comparatively, 51.8% of shares of all “Banks” companies are held by institutional investors. 12.3% of Waterstone Financial shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Waterstone Financial rivals beat Waterstone Financial on 10 of the 15 factors compared.

Waterstone Financial Company Profile

Waterstone Financial, Inc. is the holding company of WaterStone Bank SSB (WaterStone Bank). WaterStone Bank is a community bank. The Company operates in two segments: community banking and mortgage banking. The community banking segment provides consumer and business banking products and services. Its consumer products include loan products, deposit products, and personal investment services. Its business banking products include loans for working capital, inventory and general corporate use, commercial real estate construction loans, and deposit accounts. The mortgage banking segment, which is conducted through Waterstone Mortgage Corporation, consists of originating residential mortgage loans primarily for sale in the secondary market. As of December 31, 2015, WaterStone Bank conducted its community banking business from 11 banking offices located in Milwaukee, Washington and Waukesha Counties, Wisconsin, as well as a loan production office in Minneapolis, Minnesota.

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