Financial Comparison: Enterprise Financial Services Corporation (EFSC) and Its Competitors

Enterprise Financial Services Corporation (NASDAQ: EFSC) is one of 211 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its competitors? We will compare Enterprise Financial Services Corporation to similar companies based on the strength of its profitability, analyst recommendations, risk, dividends, valuation, institutional ownership and earnings.

Volatility & Risk

Enterprise Financial Services Corporation has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Enterprise Financial Services Corporation’s competitors have a beta of 0.74, meaning that their average stock price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares Enterprise Financial Services Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Enterprise Financial Services Corporation $178.28 million $48.83 million 17.46
Enterprise Financial Services Corporation Competitors $341.18 million $71.84 million 20.95

Enterprise Financial Services Corporation’s competitors have higher revenue and earnings than Enterprise Financial Services Corporation. Enterprise Financial Services Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

73.4% of Enterprise Financial Services Corporation shares are held by institutional investors. Comparatively, 46.0% of shares of all “Commercial Banks” companies are held by institutional investors. 5.6% of Enterprise Financial Services Corporation shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by 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.

Profitability

This table compares Enterprise Financial Services Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Financial Services Corporation 24.73% 11.15% 1.16%
Enterprise Financial Services Corporation Competitors 20.59% 8.67% 0.92%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Enterprise Financial Services Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Financial Services Corporation 0 1 1 0 2.50
Enterprise Financial Services Corporation Competitors 361 2851 2309 66 2.37

Enterprise Financial Services Corporation presently has a consensus target price of $47.50, indicating a potential upside of 12.43%. As a group, “Commercial Banks” companies have a potential upside of 9.08%. Given Enterprise Financial Services Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Enterprise Financial Services Corporation is more favorable than its competitors.

Dividends

Enterprise Financial Services Corporation pays an annual dividend of $0.44 per share and has a dividend yield of 1.0%. Enterprise Financial Services Corporation pays out 18.2% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.0% of their earnings in the form of a dividend.

Summary

Enterprise Financial Services Corporation beats its competitors on 9 of the 15 factors compared.

Enterprise Financial Services Corporation Company Profile

Enterprise Financial Services Corp is a financial holding company for a full service banking subsidiary, Enterprise Bank & Trust (the Bank). The Bank offers banking and wealth management services to individuals and business customers primarily located in the St. Louis, Kansas City and Phoenix metropolitan markets. The Company offers a range of business and personal banking services, and wealth management services. Its tax credit brokerage activities consist of the acquisition of Federal and State tax credits and the sale of these tax credits to clients. Enterprise Trust, a division of the Bank (Enterprise Trust or Trust), provides financial planning, estate planning, investment management, and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. It also offers a range of Treasury Management products and services that benefit businesses ranging from large national clients to smallest local merchants.

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