Analyzing Farmers National Banc (NASDAQ:FMNB) and First Western Financial (NASDAQ:MYFW)

Farmers National Banc (NASDAQ:FMNB) and First Western Financial (NASDAQ:MYFW) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Profitability

This table compares Farmers National Banc and First Western Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	19.50%	13.34%	1.14%
First Western Financial	7.08%	5.09%	0.43%

Institutional & Insider Ownership

38.7% of Farmers National Banc shares are owned by institutional investors. Comparatively, 60.3% of First Western Financial shares are owned by institutional investors. 4.0% of Farmers National Banc shares are owned by insiders. Comparatively, 15.5% of First Western Financial shares are owned 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.

Volatility & Risk

Farmers National Banc has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Farmers National Banc and First Western Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$279.92 million	1.82	$54.59 million	$1.45	9.33
First Western Financial	$186.36 million	1.36	$13.19 million	$1.35	19.33

Farmers National Banc has higher revenue and earnings than First Western Financial. Farmers National Banc 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 recommendations and price targets for Farmers National Banc and First Western Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	1	2	1	0	2.00
First Western Financial	0	2	2	1	2.80

Farmers National Banc presently has a consensus target price of $14.50, suggesting a potential upside of 7.17%. First Western Financial has a consensus target price of $24.33, suggesting a potential downside of 6.77%. Given Farmers National Banc’s higher possible upside, analysts plainly believe Farmers National Banc is more favorable than First Western Financial.

Summary

Farmers National Banc beats First Western Financial on 9 of the 15 factors compared between the two stocks.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.

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.