Head to Head Contrast: Waterstone Financial (WSBF) versus SI Financial Group (SIFI)

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

Volatility and Risk

Waterstone Financial has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, SI Financial Group has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.


Waterstone Financial pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. SI Financial Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. Waterstone Financial has increased its dividend for 2 consecutive years and SI Financial Group has increased its dividend for 2 consecutive years.

Earnings & Valuation

This table compares Waterstone Financial and SI Financial Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waterstone Financial $191.51 million 2.50 $25.96 million N/A N/A
SI Financial Group $65.15 million 2.45 $5.24 million N/A N/A

Waterstone Financial has higher revenue and earnings than SI Financial Group.

Analyst Ratings

This is a breakdown of current recommendations for Waterstone Financial and SI Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waterstone Financial 1 1 0 0 1.50
SI Financial Group 0 0 0 0 N/A

Waterstone Financial presently has a consensus target price of $15.88, suggesting a potential downside of 2.73%. Given Waterstone Financial’s higher possible upside, analysts clearly believe Waterstone Financial is more favorable than SI Financial Group.

Institutional & Insider Ownership

59.0% of Waterstone Financial shares are held by institutional investors. Comparatively, 56.1% of SI Financial Group shares are held by institutional investors. 12.0% of Waterstone Financial shares are held by company insiders. Comparatively, 1.7% of SI Financial Group shares are held 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.


This table compares Waterstone Financial and SI Financial Group’s 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%
SI Financial Group 9.64% 6.21% 0.66%


Waterstone Financial beats SI Financial Group on 10 of the 12 factors compared between the two stocks.

About Waterstone Financial

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.

About SI Financial Group

SI Financial Group, Inc. operates as the holding company for Savings Institute Bank and Trust Company that provides various financial services to consumers and businesses. Its deposit products include noninterest-bearing demand accounts, such as checking accounts; and interest-bearing accounts, including NOW and money market accounts, regular savings accounts, and certificates of deposit. The company's loan portfolio comprises one- to four-family residential mortgage loans, multi-family and commercial real estate loans, commercial business loans, and construction and land loans. It also provides consumer loans that include home equity lines of credit; and loans secured by marketable securities, passbook or certificate accounts, motorcycles, automobiles, and recreational vehicles. In addition, the company offers trust services, which comprise fiduciary, investment management, and retirement services to individuals, partnerships, corporations, and institutions; and life insurance and annuities. It operates 24 full-service offices throughout Windham, New London, Tolland, Hartford, and Middlesex counties in Connecticut, as well as Newport and Washington counties in Rhode Island. The company was founded in 1842 and is headquartered in Willimantic, Connecticut.

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