Head-To-Head Review: Princeton Bancorp (NASDAQ:BPRN) vs. Bridgewater Bancshares (NASDAQ:BWB)

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

Insider and Institutional Ownership

43.4% of Princeton Bancorp shares are owned by institutional investors. Comparatively, 65.8% of Bridgewater Bancshares shares are owned by institutional investors. 23.0% of Princeton Bancorp shares are owned by insiders. Comparatively, 23.3% of Bridgewater Bancshares shares are owned by 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.

Earnings & Valuation

This table compares Princeton Bancorp and Bridgewater Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Princeton Bancorp	$81.21 million	2.65	$7.22 million	$1.07	29.82
Bridgewater Bancshares	$253.27 million	1.88	$32.83 million	$1.22	14.22

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Princeton Bancorp and Bridgewater Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Princeton Bancorp	0	1	1	0	2.50
Bridgewater Bancshares	0	0	2	0	3.00

Princeton Bancorp currently has a consensus price target of $37.50, suggesting a potential upside of 17.52%. Bridgewater Bancshares has a consensus price target of $20.00, suggesting a potential upside of 15.27%. Given Princeton Bancorp’s higher probable upside, equities analysts plainly believe Princeton Bancorp is more favorable than Bridgewater Bancshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Princeton Bancorp	N/A	N/A	N/A
Bridgewater Bancshares	14.03%	9.73%	0.77%

Volatility and Risk

Princeton Bancorp has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Bridgewater Bancshares has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Summary

Bridgewater Bancshares beats Princeton Bancorp on 10 of the 14 factors compared between the two stocks.

About Princeton Bancorp

Princeton Bancorp, Inc. operates as the bank holding company for The Bank of Princeton that provides various banking products and services. It accepts various deposit products, including checking, savings, attorney trust, and money market accounts, as well as certificates of deposit. The company also offers traditional retail banking services, one-to-four-family residential mortgage loans, multi-family and commercial mortgage loans, construction loans, and commercial business loans, as well as consumer loans, including home equity loans and lines of credit. In addition, it provides debit and credit cards, and money orders, direct deposit, automated teller machines, cashier's checks, safe deposit boxes, online banking, wire transfers, night depository, remote deposit capture, bank-by-mail, online, and automated telephone banking services, as well as payroll-related services and merchant credit card processing services. Further, the company offers full on-line statements, on-line bill payment, account inquiries, mobile banking, transaction histories and details, and account-to-account transfer services. Princeton Bancorp, Inc. was founded in 2007 and is headquartered in Princeton, New Jersey.

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.