Norwood Financial Corp. (NWFL) vs Waterstone Financial, Inc. (WSBF)

Norwood Financial Corp. and Waterstone Financial, Inc. are both Banks Regional companies. Norwood Financial Corp. and Waterstone Financial, Inc. are of similar size ($367.0M and $365.3M). Norwood Financial Corp. trades at the lower P/E: 11.6× against 11.8×. Norwood Financial Corp. grew revenue faster over the last twelve months: 42.3% against 4.47%. Norwood Financial Corp. has the higher net margin (18.7% vs 14.6%) and the higher return on invested capital (9.03% vs 7.61%). Both pay a dividend; Waterstone Financial, Inc. yields more (5.59% vs 4.37%). Across the 20 metrics below, Norwood Financial Corp. leads on 10 and Waterstone Financial, Inc. on 10.

Valuation

Metric NWFL WSBF Banks Regional median
P/E 11.65 11.79 12.15
P/S 2.37 1.69 2.37
P/B 1.26 0.99 1.21
Price to free cash flow 12.22 7.21 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.41 3.51 2.27
Earnings yield 8.58% 8.48% 8.11%
Free cash flow yield 8.18% 13.87% 8.98%

Profitability

Metric NWFL WSBF Banks Regional median
Gross margin 66.77% 72.71% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 18.68% 14.58% 18.66%
Free cash flow margin 19.41% 20.71% 21.18%
Return on equity 11.20% 8.69% 10.64%
Return on assets 1.09% 1.33% 1.13%
Return on invested capital 9.03% 7.61% 8.33%

Growth

Metric NWFL WSBF Banks Regional median
Revenue growth (TTM) 42.25% 4.47% 6.61%
EPS growth (last fiscal year) 15,150.00% 46.53% —
Revenue growth, 5-year CAGR 15.50% (9.00%) 12.30%
Net income growth, 5-year CAGR 12.98% (20.11%) 9.71%

Health

Metric NWFL WSBF Banks Regional median
Debt to equity 0.23 0.00 0.22
Current ratio 0.91 1.01 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric NWFL WSBF Banks Regional median
Dividend yield 4.37% 5.59% 3.75%
Payout ratio 0.34 1.67 0.27

Size

Metric NWFL WSBF Banks Regional median
Market cap 366.96m 365.29m 921.07m

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