Bankwell Financial Group (NASDAQ:BWFG) and Pinnacle Bancshares (OTCMKTS:PCLB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Profitability

This table compares Bankwell Financial Group and Pinnacle Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bankwell Financial Group 20.76% 11.01% 1.01%
Pinnacle Bancshares 25.28% 9.71% 1.12%

Risk and Volatility

Bankwell Financial Group has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Pinnacle Bancshares has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Dividends

Bankwell Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 1.7%. Pinnacle Bancshares pays an annual dividend of $0.76 per share and has a dividend yield of 3.0%. Bankwell Financial Group pays out 21.8% of its earnings in the form of a dividend. Bankwell Financial Group has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Bankwell Financial Group and Pinnacle Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bankwell Financial Group 0 2 1 0 2.33
Pinnacle Bancshares 0 0 0 0 N/A

Bankwell Financial Group currently has a consensus price target of $35.50, indicating a potential upside of 18.81%. Given Bankwell Financial Group’s higher possible upside, analysts plainly believe Bankwell Financial Group is more favorable than Pinnacle Bancshares.

Insider & Institutional Ownership

52.5% of Bankwell Financial Group shares are owned by institutional investors. Comparatively, 6.0% of Pinnacle Bancshares shares are owned by institutional investors. 21.9% of Bankwell Financial Group shares are owned by company insiders. Comparatively, 14.4% of Pinnacle Bancshares 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.

Earnings and Valuation

This table compares Bankwell Financial Group and Pinnacle Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bankwell Financial Group $83.96 million 2.79 $17.43 million $2.39 12.50
Pinnacle Bancshares $9.43 million 2.81 $2.29 million N/A N/A

Bankwell Financial Group has higher revenue and earnings than Pinnacle Bancshares.

Summary

Bankwell Financial Group beats Pinnacle Bancshares on 10 of the 15 factors compared between the two stocks.

About Bankwell Financial Group

Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides a range of banking services to commercial and consumer customers in Connecticut. It accepts checking, savings, and money market accounts; and time, demand, and NOW deposits, as well as certificates of deposit. The company also provides commercial lending products, including residential real estate loans, owner-occupied commercial real estate loans, commercial real estate investment loans, business term loans, equipment financing, and lines of credit to small and mid-sized businesses, as well as real estate construction and development loans; and consumer loans, such as loans secured by savings or certificate accounts, or automobiles, as well as unsecured personal loans and overdraft lines of credit. As of June 9, 2018, it operated through a network of 12 branches. The company was formerly known as BNC Financial Group, Inc. and changed its name to Bankwell Financial Group, Inc. in September 2013. Bankwell Financial Group, Inc. was founded in 2002 and is headquartered in New Canaan, Connecticut.

About Pinnacle Bancshares

Pinnacle Bancshares, Inc. operates as the bank holding company for Pinnacle Bank that provides banking products and services in Alabama. The company's deposit products include savings accounts, checking accounts, individual retirement accounts, money market deposit accounts, certificates of deposit, interest accounts, and student accounts, as well as demand and time deposits. Its loan portfolio comprises commercial real estate loans, real estate construction and development loans, residential real estate loans, and other real estate loans; commercial non-real estate loans, such as commercial, financial, agricultural, and municipal tax free loans; home mortgage loans; and consumer loans comprising installment loans, overdrafts, and other revolving credit loans, as well as automobile, recreational vehicle, boat, second and vacation home, construction, and bridge loans. The company also offers phone and online banking services; and other services, including merchant services, transfer and payment, automated clearing house, payroll direct deposit, e-statement, safe deposit box, and remote deposit services, as well as notary services. It operates seven offices in the central and northwest Alabama. Pinnacle Bancshares, Inc. was founded in 1935 and is based in Jasper, Alabama.

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