Bridgewater Bancshares (NASDAQ:BWB) and OFG Bancorp (NYSE:OFG) Critical Analysis

Bridgewater Bancshares (NASDAQ:BWB) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Risk and Volatility

Bridgewater Bancshares has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Earnings & Valuation

This table compares Bridgewater Bancshares and OFG Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgewater Bancshares	$292.76 million	1.90	$46.09 million	$1.77	11.30
OFG Bancorp	$902.28 million	2.25	$205.10 million	$4.84	9.93

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

Institutional & Insider Ownership

65.8% of Bridgewater Bancshares shares are owned by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are owned by institutional investors. 23.1% of Bridgewater Bancshares shares are owned by insiders. Comparatively, 1.2% of OFG Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bridgewater Bancshares	17.69%	11.06%	0.91%
OFG Bancorp	23.45%	15.62%	1.74%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Bridgewater Bancshares and OFG Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgewater Bancshares	0	2	3	0	2.60
OFG Bancorp	0	3	2	1	2.67

Bridgewater Bancshares currently has a consensus target price of $21.67, indicating a potential upside of 8.33%. OFG Bancorp has a consensus target price of $47.20, indicating a potential downside of 1.77%. Given Bridgewater Bancshares’ higher possible upside, equities research analysts clearly believe Bridgewater Bancshares is more favorable than OFG Bancorp.

Summary

OFG Bancorp beats Bridgewater Bancshares on 11 of the 15 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 OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.