First Western Financial (NASDAQ:MYFW) versus Spirit of Texas Bancshares (NASDAQ:STXB) Financial Comparison

First Western Financial (NASDAQ:MYFW) and Spirit of Texas Bancshares (NASDAQ:STXB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for First Western Financial and Spirit of Texas Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Western Financial 0 1 0 0 2.00
Spirit of Texas Bancshares 0 0 3 0 3.00

First Western Financial presently has a consensus price target of $14.00, suggesting a potential downside of 13.69%. Spirit of Texas Bancshares has a consensus price target of $23.94, suggesting a potential upside of 9.92%. Given Spirit of Texas Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Spirit of Texas Bancshares is more favorable than First Western Financial.

Earnings and Valuation

This table compares First Western Financial and Spirit of Texas Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Western Financial $65.97 million 1.96 $5.65 million N/A N/A
Spirit of Texas Bancshares $67.83 million 5.07 $9.98 million $1.05 20.74

Spirit of Texas Bancshares has higher revenue and earnings than First Western Financial.

Profitability

This table compares First Western Financial and Spirit of Texas Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Western Financial 9.07% 6.45% 0.68%
Spirit of Texas Bancshares 17.19% 8.37% 1.12%

Volatility & Risk

First Western Financial has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Spirit of Texas Bancshares has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500.

Insider & Institutional Ownership

38.5% of First Western Financial shares are held by institutional investors. Comparatively, 28.0% of Spirit of Texas Bancshares shares are held by institutional investors. 24.4% of First Western Financial shares are held by insiders. Comparatively, 15.0% of Spirit of Texas Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Spirit of Texas Bancshares beats First Western Financial on 10 of the 13 factors compared between the two stocks.

About First Western Financial

First Western Financial, Inc., a financial holding company, through its subsidiaries, provides an integrated suite of wealth management services comprising private banking, personal trust, investment management, mortgage loans, and institutional asset management services. It operates through three segments: Wealth Management, Capital Management, and Mortgage. The Wealth Management segment provides deposit, loan, insurance, and trust and investment management advisory products and services. The Capital Management offers institutional investment management services; and acts as advisor of proprietary mutual funds. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. The company serves entrepreneurs, professionals, and high-net worth individuals and their related philanthropic and business organizations through a network of boutique private trust bank offices in Colorado, Arizona, Wyoming, and California. First Western Financial, Inc. was founded in 2002 and is headquartered in Denver, Colorado.

About Spirit of Texas Bancshares

Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals. It offers checking accounts, money market accounts, savings accounts, certificates of deposit, and IRA accounts. The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner-occupied commercial real estate loans, other commercial real estate loans, and multifamily loans and farmland; consumer loans and leases; and municipal and other loans. In addition, it offers debit and credit cards, safe deposit boxes, wire transfer and treasury management services, and online banking services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. The company operates through a network of 23 full-service branches located in the Houston, Dallas/Fort Worth, and Bryan/College Station metropolitan areas, as well as North Central Texas. Spirit of Texas Bancshares, Inc. was founded in 2008 and is headquartered in Conroe, Texas.

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