Head-To-Head Contrast: Rhinebeck Bancorp (NASDAQ:RBKB) vs. Bankwell Financial Group (NASDAQ:BWFG)

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

Insider and Institutional Ownership

23.9% of Rhinebeck Bancorp shares are owned by institutional investors. Comparatively, 35.8% of Bankwell Financial Group shares are owned by institutional investors. 5.6% of Rhinebeck Bancorp shares are owned by insiders. Comparatively, 19.5% of Bankwell Financial Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rhinebeck Bancorp	0	1	0	0	2.00
Bankwell Financial Group	0	2	2	0	2.50

Bankwell Financial Group has a consensus target price of $47.50, indicating a potential upside of 0.27%. Given Bankwell Financial Group’s stronger consensus rating and higher probable upside, analysts plainly believe Bankwell Financial Group is more favorable than Rhinebeck Bancorp.

Profitability

This table compares Rhinebeck Bancorp and Bankwell Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rhinebeck Bancorp	7.20%	6.47%	0.65%
Bankwell Financial Group	14.10%	10.18%	0.88%

Earnings & Valuation

This table compares Rhinebeck Bancorp and Bankwell Financial Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rhinebeck Bancorp	$47.84 million	2.86	-$8.62 million	$0.46	26.70
Bankwell Financial Group	$99.16 million	3.76	$9.77 million	$3.61	13.12

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

Risk & Volatility

Rhinebeck Bancorp has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Bankwell Financial Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Summary

Bankwell Financial Group beats Rhinebeck Bancorp on 13 of the 14 factors compared between the two stocks.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.

About Bankwell Financial Group

Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides various banking services for individual and commercial customers. It offers various traditional depository products, including checking, savings, money market, and certificates of deposit. The company also provides first mortgage loans secured by one-to-four family owner occupied residential properties for personal use; home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties; loans secured by commercial real estate, multi-family dwellings, owner-occupied commercial real estate, and investor-owned one-to-four family dwellings; commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail, and other income producing properties; land loans; commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners; loans to finance insurance premiums; overdraft lines of credit; and unsecured personal loans. It operates branches in New Canaan, Stamford, Fairfield, Westport, Darien, Norwalk, and Hamden, Connecticut. 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.