Financial Contrast: Cambridge Bancorp (NASDAQ:CATC) and First Western Financial (NASDAQ:MYFW)

Cambridge Bancorp (NASDAQ:CATCGet Free Report) and First Western Financial (NASDAQ:MYFWGet Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Earnings and Valuation

This table compares Cambridge Bancorp and First Western Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cambridge Bancorp $260.26 million 2.04 $34.11 million $3.63 18.64
First Western Financial $167.52 million 0.98 $5.22 million $0.77 22.05

Cambridge Bancorp has higher revenue and earnings than First Western Financial. Cambridge Bancorp 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.

Institutional and Insider Ownership

55.5% of Cambridge Bancorp shares are held by institutional investors. Comparatively, 60.3% of First Western Financial shares are held by institutional investors. 4.5% of Cambridge Bancorp shares are held by company insiders. Comparatively, 17.9% of First Western Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Cambridge Bancorp and First Western Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambridge Bancorp 0 1 1 0 2.50
First Western Financial 0 0 1 0 3.00

Cambridge Bancorp currently has a consensus target price of $73.15, suggesting a potential upside of 8.11%. First Western Financial has a consensus target price of $19.00, suggesting a potential upside of 11.90%. Given First Western Financial’s stronger consensus rating and higher possible upside, analysts clearly believe First Western Financial is more favorable than Cambridge Bancorp.

Profitability

This table compares Cambridge Bancorp and First Western Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cambridge Bancorp 10.11% 6.67% 0.65%
First Western Financial 4.28% 3.43% 0.28%

Risk and Volatility

Cambridge Bancorp has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Summary

Cambridge Bancorp beats First Western Financial on 8 of the 13 factors compared between the two stocks.

About Cambridge Bancorp

(Get Free Report)

Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that engages in the provision of commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking, savings, money market, trust, and individual retirement accounts, as well as time and demand deposits, and certificates of deposit. Its loan products include residential and commercial real estate loans; construction loan; residential mortgages and home equity loans; commercial and industrial loans; consumer loans, such as secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, debit and credit cards, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates through a network of banking and wealth management offices located in Massachusetts and New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.

About First Western Financial

(Get Free Report)

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.

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