Critical Comparison: Eagle Financial Services (NASDAQ:EFSI) & Bancorp (NASDAQ:TBBK)

Bancorp (NASDAQ:TBBK) and Eagle Financial Services (NASDAQ:EFSI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bancorp and Eagle Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	0	2	4	1	2.86
Eagle Financial Services	1	2	2	1	2.50

Bancorp currently has a consensus price target of $71.17, indicating a potential upside of 42.25%. Eagle Financial Services has a consensus price target of $43.75, indicating a potential downside of 4.18%. Given Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Bancorp is more favorable than Eagle Financial Services.

Risk and Volatility

Bancorp has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Eagle Financial Services has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bancorp and Eagle Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$672.07 million	3.04	$228.21 million	$5.32	9.40
Eagle Financial Services	$105.89 million	2.33	$8.21 million	$3.46	13.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bancorp	27.72%	32.32%	2.50%
Eagle Financial Services	15.16%	8.38%	0.85%

Insider & Institutional Ownership

96.2% of Bancorp shares are held by institutional investors. Comparatively, 0.3% of Eagle Financial Services shares are held by institutional investors. 6.0% of Bancorp shares are held by company insiders. Comparatively, 7.1% of Eagle Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Bancorp beats Eagle Financial Services on 12 of the 14 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. 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 personal and retirement plan services; investment services comprising tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, college savings plans, life insurance, long term care insurance, fixed income investing, brokerage CDs, and full service or discount brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; 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 twelve full-service branches, two loan production offices, one wealth management office, and one drive-through only facility, as well as 13 ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.