Financial Survey: Eagle Financial Services (OTCMKTS:EFSI) vs. FB Financial (NYSE:FBK)

FB Financial (NYSE:FBK) and Eagle Financial Services (OTCMKTS:EFSI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Volatility & Risk

FB Financial has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Eagle Financial Services has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

65.4% of FB Financial shares are held by institutional investors. Comparatively, 0.3% of Eagle Financial Services shares are held by institutional investors. 1.7% of FB Financial shares are held by company insiders. Comparatively, 12.3% of Eagle Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares FB Financial and Eagle Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FB Financial	14.40%	10.38%	1.23%
Eagle Financial Services	10.90%	10.38%	0.63%

Earnings and Valuation

This table compares FB Financial and Eagle Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FB Financial	$441.62 million	5.85	$120.22 million	$2.29	24.17
Eagle Financial Services	$97.87 million	1.26	$9.36 million	$3.26	10.64

FB Financial has higher revenue and earnings than Eagle Financial Services. Eagle Financial Services is trading at a lower price-to-earnings ratio than FB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

FB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.6%. FB Financial pays out 29.7% of its earnings in the form of a dividend. Eagle Financial Services pays out 38.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent ratings for FB Financial and Eagle Financial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FB Financial	1	3	1	0	2.00
Eagle Financial Services	0	0	0	0	0.00

FB Financial currently has a consensus target price of $48.60, indicating a potential downside of 12.19%. Given FB Financial’s stronger consensus rating and higher probable upside, analysts clearly believe FB Financial is more favorable than Eagle Financial Services.

Summary

FB Financial beats Eagle Financial Services on 12 of the 15 factors compared between the two stocks.

About FB Financial

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in segments, such as Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as residential mortgage loans. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch network and mortgage banking offices in the southeastern United States; direct-to-consumer internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. The company operates full-service bank branches and limited-service branches locations throughout Tennessee, Nashville, Chattanooga, Knoxville, Memphis, Jackson, Birmingham, Florence, Huntsville, Alabama, Bowling Green, and Kentucky; and mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke that provides various retail and commercial banking products and services in the Shenandoah Valley, Northern Virginia and Frederick, Maryland. It operates through three segments: Community Banking, Marine Lending, and Wealth Management. The company's deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers fiduciary services; advisory services and investment products, including individual retirement accounts, mutual funds, tax-deferred annuities, 529 college savings plans, life insurance, long term care insurance, brokerage certificates of deposit, and other brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; online bill payment services; wealth management services; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through full-service branches, loan production offices, drive-through only facility, and ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax, as well as Maryland community of Frederick. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.