Financial Comparison: First Western Financial (NASDAQ:MYFW) & Commercial National Financial (OTCMKTS:CEFC)

First Western Financial (NASDAQ:MYFW) and Commercial National Financial (OTCMKTS:CEFC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

60.3% of First Western Financial shares are held by institutional investors. 17.9% of First Western Financial shares are held by company insiders. Comparatively, 23.0% of Commercial National Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Western Financial	6.50%	4.55%	0.39%
Commercial National Financial	22.02%	N/A	N/A

Volatility and Risk

First Western Financial has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Commercial National Financial has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for First Western Financial and Commercial National Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Western Financial	0	3	2	0	2.40
Commercial National Financial	0	0	0	0	0.00

First Western Financial currently has a consensus price target of $24.33, suggesting a potential upside of 8.63%. Given First Western Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe First Western Financial is more favorable than Commercial National Financial.

Valuation and Earnings

This table compares First Western Financial and Commercial National Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Western Financial	$180.33 million	1.21	$8.47 million	$1.19	18.82
Commercial National Financial	$29.17 million	1.63	$5.86 million	$1.60	7.50

First Western Financial has higher revenue and earnings than Commercial National Financial. Commercial National Financial 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.

Summary

First Western Financial beats Commercial National Financial on 10 of the 14 factors compared between the two stocks.

About First Western Financial

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.

About Commercial National Financial

Commercial National Financial Corporation operates as the holding company for Commercial Bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in Michigan. The company accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. It also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, SBA loans, equipment loans, real estate loans, vehicle loans, term loans, USDA loan programs, and capital access loan programs. In addition, the company provides other services comprising business VISA check cards, debit and ATM cards, business statement savings, business certificates of deposit, merchant services, night depository, telephone banking, online banking, e-statements, direct deposit of payroll for employees, child support payments, collection of receivables, and remote deposit capture, as well as treasury services. It provides its services through offices located in Barry, Gratiot, Ingham, Kent, and Montcalm counties in Michigan. The company was founded in 1893 and is headquartered in Ithaca, Michigan.