Contrasting First Western Financial (NASDAQ:MYFW) and Enterprise Financial Services (NASDAQ:EFSC)

First Western Financial (NASDAQ:MYFW) and Enterprise Financial Services (NASDAQ:EFSC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

First Western Financial has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Enterprise Financial Services has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Western Financial and Enterprise Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Western Financial	$186.36 million	1.48	$13.19 million	$1.55	18.33
Enterprise Financial Services	$1.00 billion	2.22	$201.37 million	$5.30	11.48

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

Analyst Recommendations

This is a summary of recent ratings for First Western Financial and Enterprise Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Western Financial	0	1	1	1	3.00
Enterprise Financial Services	0	1	4	0	2.80

First Western Financial presently has a consensus price target of $27.00, indicating a potential downside of 4.96%. Enterprise Financial Services has a consensus price target of $66.00, indicating a potential upside of 8.50%. Given Enterprise Financial Services’ higher probable upside, analysts clearly believe Enterprise Financial Services is more favorable than First Western Financial.

Insider & Institutional Ownership

60.3% of First Western Financial shares are owned by institutional investors. Comparatively, 72.2% of Enterprise Financial Services shares are owned by institutional investors. 13.1% of First Western Financial shares are owned by company insiders. Comparatively, 2.2% of Enterprise Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Western Financial	8.02%	5.74%	0.48%
Enterprise Financial Services	19.81%	10.35%	1.19%

Summary

Enterprise Financial Services beats First Western Financial on 11 of the 15 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 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.