Critical Comparison: Brunswick Bancorp (OTCMKTS:BRBW) & Western Alliance Bancorporation (NYSE:WAL)

Brunswick Bancorp (OTCMKTS:BRBW) and Western Alliance Bancorporation (NYSE:WAL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares Brunswick Bancorp and Western Alliance Bancorporation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brunswick Bancorp	$16.41 million	2.75	$3.85 million	$1.21	13.22
Western Alliance Bancorporation	$2.28 billion	4.13	$722.40 million	$6.86	12.48

Western Alliance Bancorporation has higher revenue and earnings than Brunswick Bancorp. Western Alliance Bancorporation is trading at a lower price-to-earnings ratio than Brunswick Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

2.5% of Brunswick Bancorp shares are held by institutional investors. Comparatively, 79.2% of Western Alliance Bancorporation shares are held by institutional investors. 2.8% of Western Alliance Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Brunswick Bancorp and Western Alliance Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brunswick Bancorp	0	0	0	0	N/A
Western Alliance Bancorporation	0	2	13	0	2.87

Western Alliance Bancorporation has a consensus target price of $87.40, indicating a potential upside of 2.13%. Given Western Alliance Bancorporation’s higher possible upside, analysts plainly believe Western Alliance Bancorporation is more favorable than Brunswick Bancorp.

Risk & Volatility

Brunswick Bancorp has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Western Alliance Bancorporation has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares Brunswick Bancorp and Western Alliance Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brunswick Bancorp	20.13%	N/A	N/A
Western Alliance Bancorporation	15.54%	13.98%	1.08%

Summary

Western Alliance Bancorporation beats Brunswick Bancorp on 11 of the 13 factors compared between the two stocks.

About Brunswick Bancorp

Brunswick Bancorp is a bank holding company, which engages in the provision of consumer and commercial banking services. It offers personal banking, checking, certificate of deposit accounts, business checking, equipment leasing, commercial mortgages, small business loans, construction loans, and merchant services. The company was founded in 1984 and is headquartered in New Brunswick, NJ.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.