First Western Financial (NASDAQ:MYFW) vs. Esquire Financial (NASDAQ:ESQ) Financial Analysis

First Western Financial (NASDAQ:MYFW) and Esquire Financial (NASDAQ:ESQ) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Risk & Volatility

First Western Financial has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Esquire Financial has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First Western Financial and Esquire Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Western Financial	0	3	2	0	2.40
Esquire Financial	0	1	2	1	3.00

First Western Financial presently has a consensus target price of $32.33, suggesting a potential upside of 8.21%. Esquire Financial has a consensus target price of $120.33, suggesting a potential upside of 4.98%. Given First Western Financial’s higher probable upside, equities analysts clearly believe First Western Financial is more favorable than Esquire Financial.

Valuation and Earnings

This table compares First Western Financial and Esquire Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Western Financial	$186.36 million	1.57	$13.19 million	$1.86	16.06
Esquire Financial	$164.50 million	8.43	$50.82 million	$6.06	18.92

Esquire Financial has lower revenue, but higher earnings than First Western Financial. First Western Financial is trading at a lower price-to-earnings ratio than Esquire Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First Western Financial and Esquire Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Western Financial	9.50%	6.82%	0.57%
Esquire Financial	29.30%	18.22%	2.27%

Insider & Institutional Ownership

60.3% of First Western Financial shares are held by institutional investors. Comparatively, 54.7% of Esquire Financial shares are held by institutional investors. 13.1% of First Western Financial shares are held by company insiders. Comparatively, 13.9% of Esquire Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Esquire Financial beats First Western Financial on 10 of the 14 factors compared between the two stocks.

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.

About Esquire Financial

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers 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, such as 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 ISO 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, medical expenses, living expenses, payment of outstanding bills, or other consumer needs; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans, as well as merchant services. In addition, it offers cash management, cash sweep, online and mobile banking, individual retirement accounts, and working capital lines of credit. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.