Washington Trust Bancorp (NASDAQ:WASH) vs. Catalyst Bancorp (NASDAQ:CLST) Head to Head Comparison

Catalyst Bancorp (NASDAQ:CLST) and Washington Trust Bancorp (NASDAQ:WASH) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Catalyst Bancorp and Washington Trust Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Catalyst Bancorp	$23.69 million	3.09	$2.05 million	$0.55	33.05
Washington Trust Bancorp	$393.95 million	1.94	$52.24 million	$2.88	13.93

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

Volatility & Risk

Catalyst Bancorp has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Washington Trust Bancorp has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Catalyst Bancorp and Washington Trust Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Catalyst Bancorp	0	1	0	0	2.00
Washington Trust Bancorp	0	3	1	0	2.25

Washington Trust Bancorp has a consensus price target of $35.50, indicating a potential downside of 11.54%. Given Washington Trust Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Washington Trust Bancorp is more favorable than Catalyst Bancorp.

Institutional and Insider Ownership

33.1% of Catalyst Bancorp shares are owned by institutional investors. Comparatively, 65.8% of Washington Trust Bancorp shares are owned by institutional investors. 10.1% of Catalyst Bancorp shares are owned by company insiders. Comparatively, 1.3% of Washington Trust Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Catalyst Bancorp and Washington Trust Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Catalyst Bancorp	12.99%	2.47%	0.71%
Washington Trust Bancorp	14.50%	10.18%	0.84%

Summary

Washington Trust Bancorp beats Catalyst Bancorp on 11 of the 14 factors compared between the two stocks.

About Catalyst Bancorp

Catalyst Bancorp, Inc. operates as a holding company for Catalyst Bank that provides various banking services to individuals and businesses in Louisiana. The company accepts various deposit products, including savings accounts, demand and NOW accounts, money market accounts, and certificates of deposit. It also offers single family residential first mortgage loans, commercial real estate mortgage loans, multi-family residential mortgage loans, commercial and industrial loans, construction and land loans, consumer loans, and other loans. In addition, the company invests in various types of securities comprising mortgage-backed securities, the U.S. treasury obligations, securities of various federal agencies and of state and municipal governments, certificates of deposit at federally insured banks and savings institutions, and federal funds. Catalyst Bancorp, Inc. was founded in 1922 and is headquartered in Opelousas, Louisiana.

About Washington Trust Bancorp

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents’ estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.