Analyzing Waterstone Financial (WSBF) and Hometrust Bancshares (HTBI)

Waterstone Financial (NASDAQ:WSBF) and Hometrust Bancshares (NASDAQ:HTBI) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

59.0% of Waterstone Financial shares are owned by institutional investors. Comparatively, 61.0% of Hometrust Bancshares shares are owned by institutional investors. 12.0% of Waterstone Financial shares are owned by company insiders. Comparatively, 7.1% of Hometrust Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Waterstone Financial and Hometrust Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waterstone Financial $191.51 million 2.58 $25.96 million N/A N/A
Hometrust Bancshares $136.37 million 3.88 $8.17 million $1.38 20.22

Waterstone Financial has higher revenue and earnings than Hometrust Bancshares.


Waterstone Financial pays an annual dividend of $0.48 per share and has a dividend yield of 2.8%. Hometrust Bancshares does not pay a dividend. Waterstone Financial has increased its dividend for 2 consecutive years.

Risk and Volatility

Waterstone Financial has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Hometrust Bancshares has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Waterstone Financial and Hometrust Bancshares, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waterstone Financial 1 1 0 0 1.50
Hometrust Bancshares 0 2 0 0 2.00

Waterstone Financial presently has a consensus price target of $15.88, suggesting a potential downside of 5.90%. Hometrust Bancshares has a consensus price target of $28.00, suggesting a potential upside of 0.36%. Given Hometrust Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Hometrust Bancshares is more favorable than Waterstone Financial.


This table compares Waterstone Financial and Hometrust Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waterstone Financial 14.65% 7.64% 1.68%
Hometrust Bancshares 6.04% 6.43% 0.79%


Waterstone Financial beats Hometrust Bancshares on 8 of the 14 factors compared between the two stocks.

Waterstone Financial Company Profile

Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States. It operates through two segments, Community Banking and Mortgage Banking. The Community Banking segment provides consumer and business banking products and services, such as deposit and transactional solutions, including checking accounts, online banking and bill pay services, and money transfer services, as well as credit, debit, and pre-paid cards; investable funds solutions comprising savings, money market deposit, and individual retirement accounts, as well as certificates of deposit; lending solutions consisting of residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; and fixed and variable annuities, and insurance products, as well as trust and investment management accounts. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. The company also provides transaction deposit, demand deposit, and non-interest bearing demand accounts, as well as time deposits; construction and land loans; and term loans for working capital, inventory, and general corporate use. In addition, it invests in a portfolio of securities, which include mortgage-backed securities, government-sponsored enterprise bonds, municipal obligations, and other debt securities. Waterstone Financial, Inc. operates 11 full-service banking offices, 1 drive-through office, and 11 automated teller machines located in Milwaukee, Washington, and Waukesha Counties, Wisconsin, as well as a loan production office in Minneapolis, Minnesota. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. Waterstone Financial, Inc. was founded in 1921 and is based in Wauwatosa, Wisconsin.

Hometrust Bancshares Company Profile

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company's loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate lending, construction and development lending, and commercial and industrial loans. It also provides small business administration loans, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services, as well as ground and equipment lease financing to fire departments. As of June 30, 2018, the company operated 43 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.

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