Head to Head Contrast: Eagle Financial Services (OTCMKTS:EFSI) vs. Signature Bank (NASDAQ:SBNY)

Eagle Financial Services (OTCMKTS:EFSI) and Signature Bank (NASDAQ:SBNY) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

0.3% of Eagle Financial Services shares are held by institutional investors. Comparatively, 11.1% of Signature Bank shares are held by institutional investors. 12.3% of Eagle Financial Services shares are held by insiders. Comparatively, 1.5% of Signature Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Eagle Financial Services and Signature Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Financial Services	9.52%	8.95%	0.52%
Signature Bank	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Eagle Financial Services and Signature Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Financial Services	0	0	0	0	N/A
Signature Bank	0	0	0	0	N/A

Risk & Volatility

Eagle Financial Services has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Signature Bank has a beta of 9.55, meaning that its share price is 855% more volatile than the S&P 500.

Dividends

Eagle Financial Services pays an annual dividend of $1.20 per share and has a dividend yield of 4.2%. Signature Bank pays an annual dividend of $0.70 per share and has a dividend yield of 20.9%. Eagle Financial Services pays out 45.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Eagle Financial Services and Signature Bank’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Financial Services	$97.87 million	1.03	$9.36 million	$2.66	10.67
Signature Bank	$2.70 billion	0.08	$1.34 billion	N/A	N/A

Signature Bank has higher revenue and earnings than Eagle Financial Services.

Summary

Signature Bank beats Eagle Financial Services on 6 of the 11 factors compared between the two stocks.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke that provides various retail and commercial banking products and services in the Shenandoah Valley, Northern Virginia and Frederick, Maryland. It operates through three segments: Community Banking, Marine Lending, and Wealth Management. The company's deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers fiduciary services; advisory services and investment products, including individual retirement accounts, mutual funds, tax-deferred annuities, 529 college savings plans, life insurance, long term care insurance, brokerage certificates of deposit, and other brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; online bill payment services; wealth management services; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through full-service branches, loan production offices, drive-through only facility, and ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax, as well as Maryland community of Frederick. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.