Riverview Bancorp (NASDAQ:RVSB) and Waterstone Financial (NASDAQ:WSBF) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Insider and Institutional Ownership
63.7% of Riverview Bancorp shares are owned by institutional investors. Comparatively, 56.3% of Waterstone Financial shares are owned by institutional investors. 6.8% of Riverview Bancorp shares are owned by insiders. Comparatively, 12.1% of Waterstone Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent recommendations for Riverview Bancorp and Waterstone Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Riverview Bancorp currently has a consensus target price of $8.00, suggesting a potential upside of 12.99%. Waterstone Financial has a consensus target price of $20.50, suggesting a potential upside of 3.07%. Given Riverview Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Riverview Bancorp is more favorable than Waterstone Financial.
Riverview Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Waterstone Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Riverview Bancorp pays out 42.6% of its earnings in the form of a dividend. Waterstone Financial pays out 24.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Riverview Bancorp has increased its dividend for 1 consecutive years and Waterstone Financial has increased its dividend for 1 consecutive years. Waterstone Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Riverview Bancorp has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Waterstone Financial has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.
Valuation and Earnings
This table compares Riverview Bancorp and Waterstone Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Riverview Bancorp||$59.43 million||2.63||$10.47 million||$0.47||15.06|
|Waterstone Financial||$322.50 million||1.55||$81.14 million||$3.30||6.03|
Waterstone Financial has higher revenue and earnings than Riverview Bancorp. Waterstone Financial is trading at a lower price-to-earnings ratio than Riverview Bancorp, indicating that it is currently the more affordable of the two stocks.
This table compares Riverview Bancorp and Waterstone Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Waterstone Financial beats Riverview Bancorp on 9 of the 16 factors compared between the two stocks.
Riverview Bancorp Company Profile
Riverview Bancorp, Inc. operates as the holding company. It provides community banking services to small and medium size businesses, professionals, and individuals. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial real estate, other real estate mortgage, and real estate construction loans; and consumer loans, such as one-to-four family mortgage loans, home equity lines of credit, land loans, and other secured and unsecured consumer loans. In addition, it is involved in the provision of mortgage brokerage and mortgage loan servicing activities, as well as offers asset management services comprising trust, estate planning, and investment management services. The company operates through a network of 18 branch offices in Camas, Washougal, Stevenson, White Salmon, Battle Ground, Goldendale, and Vancouver, Washington; and Portland, Gresham, Tualatin, and Aumsville, Oregon. The company was founded in 1997 and is headquartered in Vancouver, WA.
Waterstone Financial Company Profile
Waterstone Financial, Inc. operates as a loan holding company, which provides principal lending activities. The firm operates through the following segments: Community Banking and Mortgage Banking. The Community Banking segment provides consumer and business banking products and services to customers primarily within Southeastern Wisconsin. The Mortgage Banking segment involves residential mortgage loans for the primary purpose of sale in the secondary market. It also offers real estate and commercial business loans, and consumer loans. The company was founded in June 2013 and is headquartered in Wauwatosa, WI.
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