FSBW vs NWBI

For growth investors, Northwest Bancshares, Inc.

(NWBI) is the stronger pick with 16. 3% revenue growth year-over-year, versus 6. 8% for FS Bancorp, Inc. (FSBW). FS Bancorp, Inc. (FSBW) offers the better valuation at 9. 7x trailing P/E (9. 2x forward), making it the more compelling value choice. Analysts rate FS Bancorp, Inc. (FSBW) a "Hold" — based on 2 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, FS Bancorp, Inc.

(FSBW) is the cheapest at 9. 7x versus Northwest Bancshares, Inc. at 15. 0x. On forward P/E, FS Bancorp, Inc. is actually cheaper at 9. 2x.

Over the past 5 years, FS Bancorp, Inc.

(FSBW) delivered a total return of +33. 8%, compared to +26. 6% for Northwest Bancshares, Inc. (NWBI). Over 10 years, the gap is even starker: FSBW returned +288. 9% versus NWBI's +52. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Northwest Bancshares, Inc.

(NWBI) is the lower-risk stock at 0. 73β versus FS Bancorp, Inc. 's 0. 74β — meaning FSBW is approximately 2% more volatile than NWBI relative to the S&P 500. On balance sheet safety, Northwest Bancshares, Inc. (NWBI) carries a lower debt/equity ratio of 24% versus 46% for FS Bancorp, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Northwest Bancshares, Inc.

(NWBI) is pulling ahead at 16. 3% versus 6. 8% for FS Bancorp, Inc. (FSBW). On earnings-per-share growth, the picture is similar: Northwest Bancshares, Inc. grew EPS 16. 5% year-over-year, compared to -1. 8% for FS Bancorp, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

FS Bancorp, Inc.

(FSBW) is the more profitable company, earning 15. 3% net margin versus 14. 4% for Northwest Bancshares, Inc. — meaning it keeps 15. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FSBW leads at 20. 6% versus 18. 8% for NWBI. At the gross margin level — before operating expenses — NWBI leads at 68. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, FS Bancorp, Inc.

(FSBW) trades at 9. 2x forward P/E versus 10. 2x for Northwest Bancshares, Inc. — 0. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FSBW: 8. 9% to $45. 00.

All stocks in this comparison pay dividends.

Northwest Bancshares, Inc. (NWBI) offers the highest yield at 5. 4%, versus 3. 2% for FS Bancorp, Inc. (FSBW).

For long-horizon retirement investors, FS Bancorp, Inc.

(FSBW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 74), 3. 2% yield, +288. 9% 10Y return). Both have compounded well over 10 years (FSBW: +288. 9%, NWBI: +52. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: FSBW is a small-cap deep-value stock; NWBI is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.