Enterprise Financial Services (NASDAQ: IBOC) and International Bancshares (NASDAQ:IBOC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Enterprise Financial Services and International Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Financial Services 0 2 1 0 2.33
International Bancshares 0 0 0 0 N/A

Enterprise Financial Services presently has a consensus target price of $53.50, indicating a potential downside of 6.22%. Given Enterprise Financial Services’ higher probable upside, analysts clearly believe Enterprise Financial Services is more favorable than International Bancshares.

Risk & Volatility

Enterprise Financial Services has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, International Bancshares has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

78.9% of Enterprise Financial Services shares are held by institutional investors. Comparatively, 58.8% of International Bancshares shares are held by institutional investors. 2.6% of Enterprise Financial Services shares are held by insiders. Comparatively, 17.1% of International Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Enterprise Financial Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.8%. International Bancshares pays an annual dividend of $0.66 per share and has a dividend yield of 1.4%. Enterprise Financial Services pays out 17.1% of its earnings in the form of a dividend. Enterprise Financial Services has raised its dividend for 3 consecutive years and International Bancshares has raised its dividend for 6 consecutive years. International Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Enterprise Financial Services and International Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Financial Services 25.87% 13.30% 1.38%
International Bancshares 31.78% 10.38% 1.58%

Valuation & Earnings

This table compares Enterprise Financial Services and International Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise Financial Services $236.93 million 5.57 $48.19 million $2.58 22.11
International Bancshares $565.54 million 5.43 $157.43 million N/A N/A

International Bancshares has higher revenue and earnings than Enterprise Financial Services.

Summary

International Bancshares beats Enterprise Financial Services on 9 of the 15 factors compared between the two stocks.

Enterprise Financial Services Company Profile

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. The company offers demand deposits, interest-bearing transaction accounts, money market accounts, and savings deposits, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, commercial real estate, real estate construction and development, residential real estate, and consumer loans. In addition, the company provides treasury management and international trade services; tax credit brokerage services consisting of the acquisition of tax credits and sale of these tax credits to clients; and financial and estate planning, investment management, trust, fiduciary, and financial advisory services to businesses, individuals, institutions, retirement plans, and non-profit organizations. As of December 31, 2017, it had 19 banking locations and 5 limited service facilities in the St. Louis metropolitan area; 7 banking locations in the Kansas City metropolitan area; and 2 banking locations in the Phoenix metropolitan area. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.

International Bancshares Company Profile

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange. In addition, it offers other banking related services, such as credit cards and safety deposit boxes; collection, notary public, escrow, and drive-up and walk-up facilities, as well as other customary banking services; and Internet banking services, as well as securities products through third party providers. The company provides its services through 192 branch locations and 294 ATMs serving 87 communities in south, central, and southeast Texas, as well as in the state of Oklahoma. International Bancshares Corporation was founded in 1966 and is based in Laredo, Texas.

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