Financial Comparison: Waterstone Financial (NASDAQ:WSBF) versus Fidelity Federal Bancorp (OTCMKTS:FDLB)

Waterstone Financial (NASDAQ:WSBF) and Fidelity Federal Bancorp (OTCMKTS:FDLB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Volatility and Risk

Waterstone Financial has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Fidelity Federal Bancorp has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.

Profitability

This table compares Waterstone Financial and Fidelity Federal Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterstone Financial	5.45%	3.18%	0.50%
Fidelity Federal Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Waterstone Financial and Fidelity Federal Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterstone Financial	0	0	0	0	N/A
Fidelity Federal Bancorp	0	0	0	0	N/A

Valuation and Earnings

This table compares Waterstone Financial and Fidelity Federal Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterstone Financial	$180.39 million	1.40	$9.38 million	$0.52	24.81
Fidelity Federal Bancorp	N/A	N/A	N/A	N/A	N/A

Waterstone Financial has higher revenue and earnings than Fidelity Federal Bancorp.

Insider & Institutional Ownership

62.7% of Waterstone Financial shares are owned by institutional investors. 8.3% of Waterstone Financial shares are owned by insiders. Comparatively, 72.2% of Fidelity Federal Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Waterstone Financial pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. Fidelity Federal Bancorp pays an annual dividend of $0.01 per share and has a dividend yield of 0.0%. Waterstone Financial pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Waterstone Financial beats Fidelity Federal Bancorp on 7 of the 9 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 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.

About Fidelity Federal Bancorp

Fidelity Federal Bancorp operates as a bank holding company for United Fidelity Bank, Fsb, offers personal and business banking services. The company offers checking accounts, savings accounts, retirement accounts, health savings, personal line of credit, and commercial lending services. It also provides credit and debit cards; safe deposit boxes; and online and telephone banking services. Fidelity Federal Bancorp is based in Evansville, Indiana. Fidelity Federal Bancorp operates as a subsidiary of Pedcor Financial Bancorp.