First Western Financial (NASDAQ:MYFW – Get Free Report) and Southside Bancshares (NASDAQ:SBSI – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Risk and Volatility
First Western Financial has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Southside Bancshares has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.
Profitability
This table compares First Western Financial and Southside Bancshares’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
First Western Financial | 3.33% | 2.44% | 0.20% |
Southside Bancshares | 18.94% | 10.64% | 1.01% |
Insider & Institutional Ownership
Earnings and Valuation
This table compares First Western Financial and Southside Bancshares”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
First Western Financial | $88.93 million | 2.00 | $5.22 million | $0.62 | 29.74 |
Southside Bancshares | $248.79 million | 3.75 | $86.69 million | $2.77 | 11.10 |
Southside Bancshares has higher revenue and earnings than First Western Financial. Southside Bancshares 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 breakdown of current ratings for First Western Financial and Southside Bancshares, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
First Western Financial | 0 | 1 | 2 | 0 | 2.67 |
Southside Bancshares | 0 | 1 | 0 | 0 | 2.00 |
First Western Financial currently has a consensus price target of $23.83, suggesting a potential upside of 29.25%. Southside Bancshares has a consensus price target of $37.00, suggesting a potential upside of 20.33%. Given First Western Financial’s stronger consensus rating and higher probable upside, equities analysts plainly believe First Western Financial is more favorable than Southside Bancshares.
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 Southside Bancshares
Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposits. The company’s loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other consumer related loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers wealth management and trust services consisting of investment management, administration of irrevocable, revocable, and testamentary trusts, estate administration, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. In addition, the company provides retirement and employee benefit accounts, including plans and profit sharing plans; and telephone, internet, and mobile banking services. The company offers various banking services through branches, drive-thru facilities, automated teller machines, and interactive teller machines. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.
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