Analyzing First Interstate BancSystem (NASDAQ:FIBK) and Bridgewater Bancshares (NASDAQ:BWB)

Bridgewater Bancshares (NASDAQ:BWB) and First Interstate BancSystem (NASDAQ:FIBK) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

65.8% of Bridgewater Bancshares shares are owned by institutional investors. Comparatively, 88.7% of First Interstate BancSystem shares are owned by institutional investors. 23.1% of Bridgewater Bancshares shares are owned by insiders. Comparatively, 8.0% of First Interstate BancSystem shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Bridgewater Bancshares and First Interstate BancSystem”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgewater Bancshares	$292.76 million	2.02	$46.09 million	$1.84	11.53
First Interstate BancSystem	$1.41 billion	2.53	$302.10 million	$3.25	11.53

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

Profitability

This table compares Bridgewater Bancshares and First Interstate BancSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgewater Bancshares	18.38%	11.21%	0.95%
First Interstate BancSystem	23.63%	9.55%	1.22%

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, First Interstate BancSystem has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Bridgewater Bancshares and First Interstate BancSystem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgewater Bancshares	0	1	4	0	2.80
First Interstate BancSystem	3	3	2	0	1.88

Bridgewater Bancshares presently has a consensus target price of $23.67, suggesting a potential upside of 11.58%. First Interstate BancSystem has a consensus target price of $36.83, suggesting a potential downside of 1.67%. Given Bridgewater Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Bridgewater Bancshares is more favorable than First Interstate BancSystem.

Summary

First Interstate BancSystem beats Bridgewater Bancshares on 8 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 First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.