Critical Contrast: QCR (NASDAQ:QCRH) and Bridgewater Bancshares (NASDAQ:BWB)

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

Insider & Institutional Ownership

70.0% of QCR shares are owned by institutional investors. Comparatively, 65.8% of Bridgewater Bancshares shares are owned by institutional investors. 3.7% of QCR shares are owned by company insiders. Comparatively, 23.2% of Bridgewater Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

QCR has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Bridgewater Bancshares has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for QCR and Bridgewater Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QCR	0	0	3	0	3.00
Bridgewater Bancshares	0	0	3	0	3.00

QCR presently has a consensus target price of $76.00, suggesting a potential downside of 1.47%. Bridgewater Bancshares has a consensus target price of $17.00, suggesting a potential upside of 17.89%. Given Bridgewater Bancshares’ higher probable upside, analysts plainly believe Bridgewater Bancshares is more favorable than QCR.

Profitability

This table compares QCR and Bridgewater Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QCR	19.37%	12.90%	1.33%
Bridgewater Bancshares	14.27%	9.51%	0.74%

Earnings and Valuation

This table compares QCR and Bridgewater Bancshares’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QCR	$546.09 million	2.38	$113.56 million	$6.71	11.49
Bridgewater Bancshares	$228.85 million	1.72	$39.96 million	$1.13	12.76

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

Summary

QCR beats Bridgewater Bancshares on 9 of the 12 factors compared between the two stocks.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company's deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company's loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

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.