Analyzing Eagle Financial Services (OTCMKTS:EFSI) and West Coast Community Bancorp (OTCMKTS:SCZC)

Volatility and Risk

West Coast Community Bancorp has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Eagle Financial Services has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares West Coast Community Bancorp and Eagle Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Coast Community Bancorp	23.91%	N/A	N/A
Eagle Financial Services	13.59%	10.92%	0.67%

Dividends

West Coast Community Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.1%. West Coast Community Bancorp pays out 23.6% of its earnings in the form of a dividend. Eagle Financial Services pays out 55.6% 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.

Earnings and Valuation

This table compares West Coast Community Bancorp and Eagle Financial Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Coast Community Bancorp	$123.69 million	3.83	$29.58 million	$3.39	13.22
Eagle Financial Services	$63.71 million	3.42	$15.34 million	$2.23	18.19

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

Insider and Institutional Ownership

9.7% of West Coast Community Bancorp shares are owned by institutional investors. Comparatively, 0.3% of Eagle Financial Services shares are owned by institutional investors. 12.3% of Eagle Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

West Coast Community Bancorp beats Eagle Financial Services on 9 of the 13 factors compared between the two stocks.

About West Coast Community Bancorp

West Coast Community Bancorp operates as the bank holding company for Santa Cruz County Bank that provides a range of commercial and personal banking services to residents and businesses in the United States. It offers checking, savings, money market, certificate of deposits, and health savings accounts; and individual retirement account and retirement plans. The company also provides lending products, including real estate commercial property, construction, asset-based, lines of credit, SBA loans, 504 loan program, business and industry, farm services agency, agricultural, and wine industry lending. In addition, it provides debit and credit cards, merchant services, online and mobile banking, remote deposit services, wire and ACH manager, treasury management, payment, and cash management services. West Coast Community Bancorp was founded in 2004 and is headquartered in Santa Cruz, California.

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.