BankFinancial (BFIN) & Waterstone Financial (WSBF) Critical Contrast

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

Volatility & Risk

BankFinancial has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Waterstone Financial has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Institutional & Insider Ownership

65.7% of BankFinancial shares are owned by institutional investors. Comparatively, 58.2% of Waterstone Financial shares are owned by institutional investors. 15.2% of BankFinancial shares are owned by insiders. Comparatively, 12.0% of Waterstone Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BankFinancial and Waterstone Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BankFinancial 0 0 1 0 3.00
Waterstone Financial 1 0 0 0 1.00

Waterstone Financial has a consensus target price of $12.75, indicating a potential downside of 23.79%. Given Waterstone Financial’s higher probable upside, analysts clearly believe Waterstone Financial is more favorable than BankFinancial.


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

Net Margins Return on Equity Return on Assets
BankFinancial 18.99% 7.88% 0.98%
Waterstone Financial 14.65% 7.64% 1.66%


BankFinancial pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Waterstone Financial pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. BankFinancial pays out 63.5% of its earnings in the form of a dividend. BankFinancial has increased its dividend for 5 consecutive years and Waterstone Financial has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares BankFinancial and Waterstone Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BankFinancial $62.59 million 4.11 $9.00 million $0.63 24.00
Waterstone Financial $191.51 million 2.52 $25.96 million N/A N/A

Waterstone Financial has higher revenue and earnings than BankFinancial.


BankFinancial beats Waterstone Financial on 10 of the 16 factors compared between the two stocks.

About BankFinancial

BankFinancial Corporation operates as the holding company for BankFinancial, National Association that provides commercial, family, and personal banking products and services in Illinois. The company accepts various deposit products, such as savings, NOW, checking, money market, IRA, and other retirement accounts, as well as certificates of deposit. It also offers multi-family and nonresidential real estate, construction and land, and commercial loans, as well as commercial leases; consumer loans; and one-to-four family residential mortgage loans, including home equity loans and lines of credit. In addition, the company provides various financial products and services, such as cash management, fund transfer, bill payment and other online and mobile banking transactions, automated teller machines, safe deposit boxes, trust, wealth management, and general insurance agency. Further, it offers financial planning services; and sells property and casualty, and other insurance products on an agency basis. It operates 19 full-service banking offices located in Cook, DuPage, Lake, and Will Counties. BankFinancial Corporation was founded in 1924 and is headquartered in Burr Ridge, Illinois.

About Waterstone Financial

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.

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