Critical Comparison: Esquire Financial (ESQ) versus Barclays (BCS)

Esquire Financial (NASDAQ:ESQ) and Barclays (NYSE:BCS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Esquire Financial and Barclays, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Esquire Financial 0 0 1 0 3.00
Barclays 2 3 6 0 2.36

Esquire Financial presently has a consensus target price of $28.00, indicating a potential upside of 14.38%. Given Esquire Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Esquire Financial is more favorable than Barclays.

Risk and Volatility

Esquire Financial has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Barclays has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares Esquire Financial and Barclays’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Esquire Financial 19.08% 7.89% 1.23%
Barclays -0.36% 5.42% 0.30%

Dividends

Barclays pays an annual dividend of $0.25 per share and has a dividend yield of 2.9%. Esquire Financial does not pay a dividend. Barclays pays out 30.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Esquire Financial and Barclays’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Esquire Financial $25.91 million 7.04 $3.64 million N/A N/A
Barclays $27.15 billion 1.37 -$1.65 billion $0.83 10.47

Esquire Financial has higher earnings, but lower revenue than Barclays.

Insider & Institutional Ownership

42.4% of Esquire Financial shares are owned by institutional investors. Comparatively, 3.5% of Barclays shares are owned by institutional investors. 23.3% of Esquire Financial shares are owned by insiders. Comparatively, 0.0% of Barclays shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Esquire Financial beats Barclays on 12 of the 15 factors compared between the two stocks.

Esquire Financial Company Profile

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to law professionals, professional service firms, small to mid-sized businesses, and individuals in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, including short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified merchant customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, home repairs, home improvement, or consumer purchases; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans. As of December 31, 2017, the company operated a branch in Garden City, New York; and an administrative office in Palm Beach Gardens, Florida. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

Barclays Company Profile

Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, other European countries, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International divisions. It offers personal and business banking services; credit and debit cards; international banking; and private banking services, which include investment, wealth planning, and credit and specialist solutions to high net worth and ultra-high net worth clients, and family offices. The company also provides investment banking services, which include financial advisory, capital raising, wealth and investment management, and financing and risk management services to corporations, governments, and financial institutions. In addition, it engages in securities dealing activities; and issues credit cards. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.

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