Critical Review: Enterprise Financial Services Corp (NASDAQ:EFSC) versus The Competition

Enterprise Financial Services Corp (NASDAQ: EFSC) is one of 200 public companies in the “Commercial Banks” industry, but how does it contrast to its peers? We will compare Enterprise Financial Services Corp to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Enterprise Financial Services Corp and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Financial Services Corp 0 1 1 0 2.50
Enterprise Financial Services Corp Competitors 360 2857 2309 68 2.37

Enterprise Financial Services Corp presently has a consensus price target of $47.50, indicating a potential upside of 10.72%. As a group, “Commercial Banks” companies have a potential upside of 7.36%. Given Enterprise Financial Services Corp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Enterprise Financial Services Corp is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Enterprise Financial Services Corp 30.21% 11.95% 1.27%
Enterprise Financial Services Corp Competitors 20.48% 8.69% 0.92%

Institutional and Insider Ownership

73.4% of Enterprise Financial Services Corp shares are owned by institutional investors. Comparatively, 46.1% of shares of all “Commercial Banks” companies are owned by institutional investors. 5.6% of Enterprise Financial Services Corp shares are owned by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Enterprise Financial Services Corp pays an annual dividend of $0.44 per share and has a dividend yield of 1.0%. Enterprise Financial Services Corp 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 35.1% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Enterprise Financial Services Corp and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Enterprise Financial Services Corp $178.28 million $48.83 million 17.73
Enterprise Financial Services Corp Competitors $343.38 million $72.34 million 21.11

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

Risk and Volatility

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

Summary

Enterprise Financial Services Corp beats its peers on 9 of the 15 factors compared.

Enterprise Financial Services Corp 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.

Receive News & Ratings for Enterprise Financial Services Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enterprise Financial Services Corp and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply