Trinity Bank, N.A. (OTCMKTS:TYBT) versus Waterstone Financial (NASDAQ:WSBF) Financial Review

Trinity Bank, N.A. (OTCMKTS:TYBT) and Waterstone Financial (NASDAQ:WSBF) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Dividends

Trinity Bank, N.A. pays an annual dividend of $1.76 per share and has a dividend yield of 1.9%. Waterstone Financial pays an annual dividend of $0.60 per share and has a dividend yield of 5.3%. Trinity Bank, N.A. pays out 24.6% of its earnings in the form of a dividend. Waterstone Financial pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Trinity Bank, N.A. and Waterstone Financial’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Bank, N.A.	$24.78 million	4.10	$8.02 million	$7.14	13.04
Waterstone Financial	$180.39 million	1.25	$9.38 million	$0.46	24.65

Waterstone Financial has higher revenue and earnings than Trinity Bank, N.A.. Trinity Bank, N.A. is trading at a lower price-to-earnings ratio than Waterstone Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Trinity Bank, N.A. and Waterstone Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Bank, N.A.	30.65%	N/A	N/A
Waterstone Financial	5.20%	2.66%	0.43%

Insider & Institutional Ownership

62.7% of Waterstone Financial shares are owned by institutional investors. 8.3% of Waterstone Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Trinity Bank, N.A. has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, Waterstone Financial has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Trinity Bank, N.A. and Waterstone Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Bank, N.A.	0	0	0	0	N/A
Waterstone Financial	0	0	0	0	N/A

Summary

Waterstone Financial beats Trinity Bank, N.A. on 9 of the 13 factors compared between the two stocks.

About Trinity Bank, N.A.

Trinity Bank, N.A. provides personal and business banking products and services in Texas. It provides personal and business deposits, such as checking and money market accounts; treasury tax and loan deposits; mobile deposits; certificates of deposit; and automobile, secured/unsecured, home improvement, lots and interim construction, installment/term, equipment, and real estate loans, as well as revolving lines of credit. The company also offers cash management, internet and mobile banking, remote capture, CD ROM delivery, foreign and domestic wire transfer, and bill pay services, as well as ATM or Visa check cards, merchant cards, and debit cards. Trinity Bank, N.A. was founded in 2003 and is based in Fort Worth, Texas.

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 in two segments, Community Banking and Mortgage Banking. The Community Banking segment offers consumer and business banking products and services, such as deposit and transactional solutions, including checking accounts, online banking and bill pay services, money transfer services, as well as credit, debit, and pre-paid cards; investable funds solutions comprising savings, money market deposits, individual retirement accounts, and certificates of deposit; 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, insurance products, and trust and investment management accounts. It also provides transaction deposits, interest bearing transaction accounts, demand deposits, non-interest-bearing demand accounts, and time deposits; secured and unsecured lines; commercial real estate construction loans; term loans for working capital, inventory, and general corporate use; and personal term loans and investment services. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. It also invests in a portfolio of securities include mortgage-backed securities, government-sponsored and private-label enterprise bonds, collateralized mortgage and municipal obligations, and other debt securities. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. The company was founded in 1921 and is based in Wauwatosa, Wisconsin.