Eagle Financial Services (OTCMKTS:EFSI – Get a rating) and TriCo Bancshares (NASDAQ:TCBK – Get a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on their dividend strength, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Eagle Financial Services pays an annual dividend of $1.12 per share and has a dividend yield of 3.2%. TriCo Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Eagle Financial Services pays 33.9% of its earnings as a dividend. TriCo Bancshares pays 28.7% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. TriCo Bancshares has increased its dividend for 1 consecutive years.
Risk and Volatility
Eagle Financial Services has a beta of 0.62, meaning its stock price is 38% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.54, meaning its stock price is 46 % less volatile than the S&P 500.
Insider and Institutional Ownership
1.3% of Eagle Financial Services shares are held by institutional investors. By comparison, 57.7% of TriCo Bancshares shares are held by institutional investors. 12.9% of Eagle Financial Services shares are held by insiders. By comparison, 4.1% of TriCo Bancshares shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Eagle Financial Services and TriCo Bancshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Eagle Financial Services||$54.00 million||2.29||$11.02 million||$3.30||10.75|
|TriCo Bench Shares||$340.71 million||4.56||$117.65 million||$3.48||13.19|
TriCo Bancshares has higher revenues and profits than Eagle Financial Services. Eagle Financial Services trades at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Eagle Financial Services and TriCo Bancshares.
|Net margins||Return on equity||return on assets|
|Eagle Financial Services||20.26%||10.62%||0.89%|
|TriCo Bench Shares||30.61%||10.62%||1.24%|
This is a breakdown of the current recommendations for Eagle Financial Services and TriCo Bancshares, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Eagle Financial Services||0||0||0||0||N / A|
|TriCo Bench Shares||0||0||5||0||3.00|
TriCo Bancshares has a consensus price target of $48.40, suggesting a potential upside of 5.42%. Given the higher potential upside of TriCo Bancshares, analysts clearly believe that TriCo Bancshares is more favorable than Eagle Financial Services.
TriCo Bancshares beats Eagle Financial Services on 12 out of 15 factors compared between the two stocks.
About Eagle Financial Services (Get a rating)
Eagle Financial Services, Inc. operates as a bank holding company for Bank of Clarke County which 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 ordinary savings accounts; and sight and term deposits. Its loan portfolio includes residential real estate for one to four families, commercial real estate, construction and land development loans, commercial and industrial loans, as well as secured and unsecured consumer loans. , which include personal installment loans, personal lines of credit, car loans and credit card loans. The company also offers services to individuals and pension plans; investment services including tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, education savings plans, life insurance, long-term care insurance, investments fixed income, brokerage CDs and full or discount brokerage services; investment products other than deposits; and title insurance products. Additionally, it provides ATM and debit cards; and telephone, Internet, and mobile banking, 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 origination offices, a wealth management office and a drive-thru only, as well as 13 ATMs 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.
About TriCo Bancshares (Get a rating)
TriCo Bancshares operates as a bank holding company for Tri Counties Bank which provides retail and corporate commercial banking services. The company accepts demand, savings and term deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; commercial loans, including agricultural loans; and housing construction loans. Additionally, the company offers cash management services; and other usual banking services, including safe deposit boxes; and independent financial and brokerage services. It operates 61 brick-and-mortar branches, 7 in-store branches, and 7 loan origination offices in 31 counties across California. The company was founded in 1975 and is based in Chico, California.
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