Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) and First Western Financial (NASDAQ:MYFW – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Enterprise Financial Services and First Western Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enterprise Financial Services | $1.00 billion | 2.21 | $201.37 million | $5.30 | 11.44 |
| First Western Financial | $186.36 million | 1.52 | $13.19 million | $1.55 | 18.82 |
Insider and Institutional Ownership
72.2% of Enterprise Financial Services shares are held by institutional investors. Comparatively, 60.3% of First Western Financial shares are held by institutional investors. 2.2% of Enterprise Financial Services shares are held by insiders. Comparatively, 13.1% of First Western Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Enterprise Financial Services and First Western Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enterprise Financial Services | 19.81% | 10.35% | 1.19% |
| First Western Financial | 8.02% | 5.74% | 0.48% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Enterprise Financial Services and First Western Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enterprise Financial Services | 0 | 1 | 4 | 0 | 2.80 |
| First Western Financial | 0 | 1 | 1 | 1 | 3.00 |
Enterprise Financial Services presently has a consensus price target of $66.00, suggesting a potential upside of 8.89%. First Western Financial has a consensus price target of $27.00, suggesting a potential downside of 7.44%. Given Enterprise Financial Services’ higher possible upside, analysts plainly believe Enterprise Financial Services is more favorable than First Western Financial.
Risk & Volatility
Enterprise Financial Services has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Summary
Enterprise Financial Services beats First Western Financial on 11 of the 15 factors compared between the two stocks.
About Enterprise Financial Services
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.
About First Western Financial
First Western Financial, Inc., a financial holding company, provides wealth advisory, private baking, personal trust, investment management, mortgage lending, and institutional asset management services. The company operates through two segments: Wealth Management and Mortgage. The Wealth Management segment provides deposit, loan, life insurance, and trust and investment management advisory products and services. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. It serves entrepreneurs, professionals, high net worth individuals or families, and business and philanthropic organizations. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado.
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