Waterstone Financial (NASDAQ:WSBF) and Broadway Financial (NASDAQ:BYFC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Waterstone Financial pays an annual dividend of $0.48 per share and has a dividend yield of 2.8%. Broadway Financial does not pay a dividend. Waterstone Financial has raised its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Waterstone Financial and Broadway Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waterstone Financial $191.51 million 2.54 $25.96 million N/A N/A
Broadway Financial $18.82 million 1.97 $1.86 million N/A N/A

Waterstone Financial has higher revenue and earnings than Broadway Financial.

Analyst Ratings

This is a summary of current ratings and target prices for Waterstone Financial and Broadway Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waterstone Financial 1 1 0 0 1.50
Broadway Financial 0 0 0 0 N/A

Waterstone Financial currently has a consensus price target of $15.88, indicating a potential downside of 6.07%. Given Waterstone Financial’s higher probable upside, equities research analysts clearly believe Waterstone Financial is more favorable than Broadway Financial.

Insider & Institutional Ownership

58.7% of Waterstone Financial shares are held by institutional investors. Comparatively, 7.7% of Broadway Financial shares are held by institutional investors. 12.0% of Waterstone Financial shares are held by insiders. Comparatively, 2.7% of Broadway Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Waterstone Financial and Broadway Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waterstone Financial 14.65% 7.64% 1.66%
Broadway Financial 0.87% 1.39% 0.16%

Risk and Volatility

Waterstone Financial has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Summary

Waterstone Financial beats Broadway Financial on 11 of the 13 factors compared between the two stocks.

Waterstone Financial Company Profile

Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States. It operates through two segments, Community Banking and Mortgage Banking. The Community Banking segment provides consumer and business banking products and services, such as deposit and transactional solutions, including checking accounts, online banking and bill pay services, and money transfer services, as well as credit, debit, and pre-paid cards; investable funds solutions comprising savings, money market deposit, and individual retirement accounts, as well as certificates of deposit; lending solutions consisting of residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; and fixed and variable annuities, and insurance products, as well as trust and investment management accounts. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. The company also provides transaction deposit, demand deposit, and non-interest bearing demand accounts, as well as time deposits; construction and land loans; and term loans for working capital, inventory, and general corporate use. In addition, it invests in a portfolio of securities, which include mortgage-backed securities, government-sponsored enterprise bonds, municipal obligations, and other debt securities. Waterstone Financial, Inc. operates 11 full-service banking offices, 1 drive-through office, and 11 automated teller machines located in Milwaukee, Washington, and Waukesha Counties, Wisconsin, as well as a loan production office in Minneapolis, Minnesota. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. Waterstone Financial, Inc. was founded in 1921 and is based in Wauwatosa, Wisconsin.

Broadway Financial Company Profile

Broadway Financial Corporation operates as the holding company for Broadway Federal Bank, f.s.b. that engages in the savings and loan business in Southern California. It accepts various deposit products, such as savings accounts, checking accounts, NOW accounts, money market accounts, and fixed-term certificates of deposit. The company also provides loan products, including multi-family mortgage, single family mortgage, commercial real estate, church, construction, commercial, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company operates through three branch offices comprising two offices in Los Angeles and one in Inglewood, California. Broadway Financial Corporation was founded in 1946 and is headquartered in Los Angeles, California.

Receive News & Ratings for Waterstone Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Waterstone Financial and related companies with MarketBeat.com's FREE daily email newsletter.