Financial Comparison: Winchester Bancorp (NASDAQ:WSBK) vs. Washington Trust Bancorp (NASDAQ:WASH)

Winchester Bancorp (NASDAQ:WSBK) and Washington Trust Bancorp (NASDAQ:WASH) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Insider & Institutional Ownership

65.8% of Washington Trust Bancorp shares are owned by institutional investors. 4.2% of Winchester Bancorp shares are owned by insiders. Comparatively, 1.3% of Washington Trust Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Winchester Bancorp and Washington Trust Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winchester Bancorp	1	0	0	0	1.00
Washington Trust Bancorp	0	3	1	0	2.25

Washington Trust Bancorp has a consensus target price of $35.50, indicating a potential downside of 6.03%. Given Washington Trust Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Washington Trust Bancorp is more favorable than Winchester Bancorp.

Profitability

This table compares Winchester Bancorp and Washington Trust Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winchester Bancorp	8.56%	3.72%	0.42%
Washington Trust Bancorp	14.50%	10.18%	0.84%

Valuation & Earnings

This table compares Winchester Bancorp and Washington Trust Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winchester Bancorp	$51.65 million	2.33	$4.42 million	$0.49	26.43
Washington Trust Bancorp	$393.95 million	1.83	$52.24 million	$2.88	13.12

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

Volatility and Risk

Winchester Bancorp has a beta of -0.33, indicating that its share price is 133% less volatile than the S&P 500. Comparatively, Washington Trust Bancorp has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Summary

Washington Trust Bancorp beats Winchester Bancorp on 11 of the 14 factors compared between the two stocks.

About Winchester Bancorp

Winchester Bancorp, MHC will be formed as the Massachusetts-chartered mutual holding company of Winchester Bancorp, Inc. in connection with the reorganization of Winchester Savings Bank into the “two-tier”mutual holding company form of organization. Upon completion of the reorganization and offering, Winchester Bancorp, MHC will own 55% of Winchester Bancorp, Inc.’s common stock. As a mutual holding company, Winchester Bancorp, MHC will be a non-stock company that will be required by law to own a majority of the outstanding voting stock of Winchester Bancorp, Inc. for so long as Winchester Bancorp, MHC remains in existence. Winchester Bancorp, MHC, through its board of trustees, will be able to exercise voting control over virtually all matters put to a vote of stockholders of Winchester Bancorp, Inc. Winchester Bancorp, MHC will be subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks and the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). Winchester Bancorp, Inc. is a Maryland corporation that was incorporated in December 2024. The offering of common stock is being made by Winchester Bancorp, Inc. in connection with the reorganization of Winchester Savings Bank into the “two-tier” mutual holding company form of organization. Winchester Bancorp, Inc. will become the bank holding company for Winchester Savings Bank by owning all the outstanding shares of capital stock of Winchester Savings Bank. To date, Winchester Bancorp, Inc. has engaged in organizational activities only. Following the reorganization and offering, Winchester Bancorp, Inc.’s primary business activity will be to own all the outstanding shares of capital stock of Winchester Savings Bank. Winchester Bancorp, Inc. will be authorized to engage in any other business activities that are permissible for bank holding companies under Massachusetts and federal law. Upon completion of the reorganization and offering, Winchester Bancorp, MHC will own 55% and public stockholders will own 43% of Winchester Bancorp, Inc.’s common stock. Public stockholders will not be able to exercise voting control over most matters put to a vote of stockholders. In addition, as a “controlled company” under the meaning of the Nasdaq Stock Market corporate governance rules following the offering, Winchester Bancorp, Inc. will be exempt from certain corporate governance requirements, including the requirement that a majority of our board of directors be independent under Nasdaq Stock Market listing standards, and that executive compensation and director nominations be overseen by independent directors. Winchester Bancorp, Inc. will be subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks and the Federal Reserve Board. Winchester Bancorp, Inc.’s website address will be www.winchestersavings.com. Winchester Savings Bank is a Massachusetts-chartered savings bank headquartered in Winchester, Massachusetts. Winchester Savings Bank was originally chartered in 1871, and operates from its main office and four full-service branch offices in eastern Massachusetts, located in Arlington, Danvers and Woburn. Winchester Savings Bank’s subsidiaries are Sachem Holdings, Inc., Aberjona Holdings, Inc., 1871 Company, LLC, and Wedgemere Holdings, LLC. Sachem Holdings, Inc. and Aberjona Holdings, Inc. are Massachusetts security corporations established to hold investment securities. 1871 Company, LLC’s principal activity is the holding of bank premises. Wedgemere Holdings, LLC’s principal activity is the holding of properties acquired in settlement of loans. We consider Middlesex County and, to a lesser extent, Essex County, as our primary market area for gathering deposits. We consider Middlesex County as well as the surrounding counties located in Massachusetts as our primary market area for lending. Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential real estate loans, multi-family residential real estate loans, construction loans, commercial real estate loans, home equity loans and lines of credit, commercial business loans and consumer loans, as well as in investment securities. Winchester Savings Bank is subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks and the Federal Deposit Insurance Corporation (the “FDIC”). Winchester Savings Bank’s main office is located in Winchester, Massachusetts.

About Washington Trust Bancorp

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents’ estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.