Critical Analysis: Eagle Financial Services (OTCMKTS:EFSI) vs. Sberbank of Russia (OTCMKTS:SBRCY)

Risk & Volatility

Eagle Financial Services has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Sberbank of Russia has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Earnings and Valuation

This table compares Eagle Financial Services and Sberbank of Russia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Financial Services	$59.17 million	3.31	$15.34 million	$2.16	16.86
Sberbank of Russia	$49.52 billion	0.06	$16.97 billion	N/A	N/A

Sberbank of Russia has higher revenue and earnings than Eagle Financial Services.

Dividends

Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Sberbank of Russia pays an annual dividend of $0.85 per share and has a dividend yield of 163.5%. Eagle Financial Services pays out 57.4% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.3% of Eagle Financial Services shares are held by institutional investors. Comparatively, 0.1% of Sberbank of Russia shares are held by institutional investors. 8.7% of Eagle Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Eagle Financial Services and Sberbank of Russia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Financial Services	13.59%	10.92%	0.67%
Sberbank of Russia	40.80%	21.45%	2.97%

Summary

Sberbank of Russia beats Eagle Financial Services on 8 of the 11 factors compared between the two stocks.

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.

About Sberbank of Russia

Sberbank of Russia, together with its subsidiaries, provides corporate and retail banking products and services to individuals, small businesses, corporate clients, and financial institutions. The company offers deposit products; pension accounts; payment, transfer, brokerage, and asset management services; car, housing, education, and consumer loans; mortgages; debit and credit cards, and overdraft service; and refinancing products. It also provides derivative, financial instrument, foreign currency, precious metal, corporate structured, and commodities and securities products, as well as debt and capital markets funding, documentary, and other commission services. In addition, it offers life, property, bank card, accident, liability, trust management, investment and universal life, travel, and mutual investment funds insurance products, as well as individual pension plans and corporate pension programs. Additionally, the company provides business bank accounts, platform for exporters and importers, merchant acquiring and international trading services, and corporate cards for small businesses; and loans, investment products and capital markets services, fund investment services, and banking services for corporate clients. It also provides trade finance, interbank lending, currency risk hedging, and treasury services; deposits, custody services, and electronic trading systems; and settlement and cash collection services to financial institutions. As of December 31, 2020, the company operated 11 Regional banks and 14,162 branches in Russia. The company also has operations in 18 countries internationally. Sberbank of Russia was founded in 1841 and is headquartered in Moscow, Russia.