Head to Head Analysis: First Commonwealth Financial (NYSE:FCF) versus Esquire Financial (NASDAQ:ESQ)

Esquire Financial (NASDAQ:ESQ) and First Commonwealth Financial (NYSE:FCF) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Insider & Institutional Ownership

54.7% of Esquire Financial shares are held by institutional investors. Comparatively, 72.6% of First Commonwealth Financial shares are held by institutional investors. 18.0% of Esquire Financial shares are held by insiders. Comparatively, 2.2% of First Commonwealth Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Esquire Financial and First Commonwealth Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Esquire Financial	$164.50 million	5.67	$50.82 million	$5.88	18.53
First Commonwealth Financial	$522.91 million	3.64	$152.30 million	$1.46	12.58

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

Profitability

This table compares Esquire Financial and First Commonwealth Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Esquire Financial	30.90%	18.72%	2.40%
First Commonwealth Financial	20.88%	10.43%	1.30%

Risk & Volatility

Esquire Financial has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, First Commonwealth Financial has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Dividends

Esquire Financial pays an annual dividend of $0.70 per share and has a dividend yield of 0.6%. First Commonwealth Financial pays an annual dividend of $0.54 per share and has a dividend yield of 2.9%. Esquire Financial pays out 11.9% of its earnings in the form of a dividend. First Commonwealth Financial pays out 37.0% 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. Esquire Financial has increased its dividend for 4 consecutive years and First Commonwealth Financial has increased its dividend for 9 consecutive years. First Commonwealth Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Esquire Financial and First Commonwealth Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Esquire Financial	0	1	2	0	2.67
First Commonwealth Financial	0	3	4	0	2.57

Esquire Financial presently has a consensus price target of $118.00, suggesting a potential upside of 8.33%. First Commonwealth Financial has a consensus price target of $19.75, suggesting a potential upside of 7.54%. Given Esquire Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Esquire Financial is more favorable than First Commonwealth Financial.

Summary

Esquire Financial beats First Commonwealth Financial on 10 of the 17 factors compared between the two stocks.

About Esquire Financial

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, such as short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified ISO customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, medical expenses, living expenses, payment of outstanding bills, or other consumer needs; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans, as well as merchant services. In addition, it offers cash management, cash sweep, online and mobile banking, individual retirement accounts, and working capital lines of credit. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

About First Commonwealth Financial

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. In addition, it offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. The company was founded in 1934 and is headquartered in Indiana, Pennsylvania.