Financial Survey: Chemung Financial (NASDAQ:CHMG) versus Bridgewater Bancshares (NASDAQ:BWB)

Bridgewater Bancshares (NASDAQ:BWB) and Chemung Financial (NASDAQ:CHMG) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Earnings and Valuation

This table compares Bridgewater Bancshares and Chemung Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgewater Bancshares	$228.85 million	1.43	$39.96 million	$1.13	10.42
Chemung Financial	$137.62 million	1.49	$25.00 million	$5.22	8.30

Bridgewater Bancshares has higher revenue and earnings than Chemung Financial. Chemung Financial is trading at a lower price-to-earnings ratio than Bridgewater Bancshares, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

65.8% of Bridgewater Bancshares shares are owned by institutional investors. Comparatively, 47.5% of Chemung Financial shares are owned by institutional investors. 23.2% of Bridgewater Bancshares shares are owned by company insiders. Comparatively, 12.0% of Chemung Financial shares are owned 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bridgewater Bancshares and Chemung Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgewater Bancshares	0	0	3	0	3.00
Chemung Financial	0	1	0	0	2.00

Bridgewater Bancshares presently has a consensus target price of $15.00, indicating a potential upside of 27.33%. Chemung Financial has a consensus target price of $49.00, indicating a potential upside of 13.16%. Given Bridgewater Bancshares’ stronger consensus rating and higher possible upside, research analysts plainly believe Bridgewater Bancshares is more favorable than Chemung Financial.

Profitability

This table compares Bridgewater Bancshares and Chemung Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgewater Bancshares	15.37%	10.20%	0.78%
Chemung Financial	17.35%	12.67%	0.85%

Risk and Volatility

Bridgewater Bancshares has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Chemung Financial has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Summary

Bridgewater Bancshares beats Chemung Financial on 9 of the 14 factors compared between the two stocks.

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.

About Chemung Financial

Chemung Financial Corporation operates as a bank holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial and residential mortgage loans; and consumer loans, including home equity lines of credit and home equity term loans. In addition, the company provides interest rate swaps, letters of credit, employee benefit plans, insurance products, mutual fund, brokerage, and tax preparation services. Further, it offers guardian, custodian, trustee, investment, pension, estate planning, and employee benefit administrative services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.