First Western Financial (NASDAQ:MYFW) and Citizens Financial Services (OTCMKTS:CZFS) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Valuation and Earnings
This table compares First Western Financial and Citizens Financial Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Western Financial||$77.63 million||1.44||$8.01 million||$1.16||12.16|
|Citizens Financial Services||$70.37 million||2.74||$19.49 million||$5.48||8.94|
Citizens Financial Services has lower revenue, but higher earnings than First Western Financial. Citizens 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.
This is a breakdown of current ratings and recommmendations for First Western Financial and Citizens Financial Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Western Financial||0||0||2||0||3.00|
|Citizens Financial Services||0||0||0||0||N/A|
First Western Financial currently has a consensus target price of $18.00, suggesting a potential upside of 27.57%. Given First Western Financial’s higher possible upside, equities research analysts clearly believe First Western Financial is more favorable than Citizens Financial Services.
Volatility & Risk
First Western Financial has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Citizens Financial Services has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.
This table compares First Western Financial and Citizens Financial Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Western Financial||15.84%||12.32%||1.21%|
|Citizens Financial Services||27.47%||12.94%||1.37%|
Institutional & Insider Ownership
43.6% of First Western Financial shares are held by institutional investors. Comparatively, 0.3% of Citizens Financial Services shares are held by institutional investors. 23.9% of First Western Financial shares are held by company insiders. Comparatively, 12.3% of Citizens Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Citizens Financial Services beats First Western Financial on 7 of the 13 factors compared between the two stocks.
First Western Financial Company Profile
First Western Financial, Inc., a financial holding company, through its subsidiaries, provides an integrated suite of wealth management services comprising private banking, personal trust, investment management, mortgage loans, and institutional asset management services. It operates through three segments: Wealth Management, Capital Management, and Mortgage. The Wealth Management segment provides deposit, loan, insurance, and trust and investment management advisory products and services. The Capital Management offers institutional investment management services; and acts as advisor of proprietary mutual funds. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. The company serves entrepreneurs, professionals, and high-net worth individuals and their related philanthropic and business organizations through a network of boutique private trust bank offices in Colorado, Arizona, Wyoming, and California. First Western Financial, Inc. was founded in 2002 and is headquartered in Denver, Colorado.
Citizens Financial Services Company Profile
Citizens Financial Services, Inc. operates as the holding company for First Citizens Community Bank that provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as manages oil and gas matters related to the customers land; and mutual funds, annuities, and health and life insurance products. As of December 31, 2018, the company operated 26 full-service banking branches in Potter, Tioga, Bradford, Clinton, Lebanon, Lancaster, Berks, Schuylkill, and Centre counties, Pennsylvania; and Allegany County, New York, as well as a limited branch office each in Union and Lancaster counties, Pennsylvania. Citizens Financial Services, Inc. was founded in 1984 and is headquartered in Mansfield, Pennsylvania.
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