Analyzing JSB Financial (OTCMKTS:JFWV) and Esquire Financial (NASDAQ:ESQ)

Esquire Financial (NASDAQ:ESQ) and JSB Financial (OTCMKTS:JFWV) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Volatility and Risk

Esquire Financial has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, JSB Financial has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Profitability

This table compares Esquire Financial and JSB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Esquire Financial	30.90%	18.28%	2.31%
JSB Financial	N/A	N/A	N/A

Insider & Institutional Ownership

54.7% of Esquire Financial shares are owned by institutional investors. Comparatively, 0.1% of JSB Financial shares are owned by institutional investors. 18.0% of Esquire Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Esquire Financial and JSB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Esquire Financial	0	1	2	1	3.00
JSB Financial	0	0	0	0	0.00

Esquire Financial presently has a consensus price target of $120.33, indicating a potential upside of 10.79%. Given Esquire Financial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Esquire Financial is more favorable than JSB Financial.

Valuation & Earnings

This table compares Esquire Financial and JSB Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Esquire Financial	$164.50 million	5.70	$50.82 million	$5.88	18.47
JSB Financial	N/A	N/A	$4.20 million	$16.17	7.42

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

Dividends

Esquire Financial pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. JSB Financial pays an annual dividend of $2.90 per share and has a dividend yield of 2.4%. Esquire Financial pays out 13.6% of its earnings in the form of a dividend. JSB Financial pays out 17.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Esquire Financial has increased its dividend for 4 consecutive years.

Summary

Esquire Financial beats JSB Financial on 15 of the 17 factors compared between the two stocks.

About Esquire Financial

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, such as short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified ISO customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, medical expenses, living expenses, payment of outstanding bills, or other consumer needs; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans, as well as merchant services. In addition, it offers cash management, cash sweep, online and mobile banking, individual retirement accounts, and working capital lines of credit. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.