Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) and FirstSun Capital Bancorp (NASDAQ:FSUN – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
Insider & Institutional Ownership
72.2% of Enterprise Financial Services shares are held by institutional investors. 2.3% of Enterprise Financial Services shares are held by insiders. Comparatively, 12.5% of FirstSun Capital Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Enterprise Financial Services and FirstSun Capital Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enterprise Financial Services | 21.28% | 11.19% | 1.29% |
| FirstSun Capital Bancorp | 15.99% | 9.24% | 1.19% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enterprise Financial Services | $552.16 million | 3.85 | $185.27 million | $5.27 | 10.91 |
| FirstSun Capital Bancorp | $549.33 million | 1.99 | $75.63 million | $3.13 | 12.58 |
Enterprise Financial Services has higher revenue and earnings than FirstSun Capital Bancorp. Enterprise Financial Services is trading at a lower price-to-earnings ratio than FirstSun Capital Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Enterprise Financial Services and FirstSun Capital Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enterprise Financial Services | 0 | 0 | 4 | 0 | 3.00 |
| FirstSun Capital Bancorp | 0 | 1 | 4 | 0 | 2.80 |
Enterprise Financial Services presently has a consensus target price of $64.33, indicating a potential upside of 11.88%. FirstSun Capital Bancorp has a consensus target price of $46.00, indicating a potential upside of 16.84%. Given FirstSun Capital Bancorp’s higher probable upside, analysts plainly believe FirstSun Capital Bancorp is more favorable than Enterprise Financial Services.
Volatility and Risk
Enterprise Financial Services has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, FirstSun Capital Bancorp has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.
Summary
Enterprise Financial Services beats FirstSun Capital Bancorp on 9 of the 13 factors compared between the two stocks.
About Enterprise Financial Services
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.
About FirstSun Capital Bancorp
FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO.
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