First Western Financial (NASDAQ:MYFW – Get Rating) and Allegiance Bancshares (NASDAQ:ABTX – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Volatility and Risk
First Western Financial has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Allegiance Bancshares has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
This table compares First Western Financial and Allegiance Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Western Financial||19.13%||12.04%||1.03%|
Earnings & Valuation
This table compares First Western Financial and Allegiance Bancshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Western Financial||$102.07 million||2.74||$20.61 million||$2.34||12.65|
|Allegiance Bancshares||$261.75 million||3.04||$81.55 million||$4.02||9.70|
Allegiance Bancshares has higher revenue and earnings than First Western Financial. Allegiance Bancshares is trading at a lower price-to-earnings ratio than First Western Financial, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for First Western Financial and Allegiance Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Western Financial||0||0||0||0||N/A|
Insider and Institutional Ownership
38.9% of First Western Financial shares are owned by institutional investors. Comparatively, 54.6% of Allegiance Bancshares shares are owned by institutional investors. 22.3% of First Western Financial shares are owned by company insiders. Comparatively, 5.8% of Allegiance Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Allegiance Bancshares beats First Western Financial on 8 of the 11 factors compared between the two stocks.
About First Western Financial (Get Rating)
First Western Financial, Inc., a financial holding company, provides wealth management, private banking, personal trust, investment management, mortgage lending, and institutional asset management services. The company operates through two segments: Wealth Management and Mortgage. The Wealth Management segment provides deposit, loan, insurance, and trust and investment management advisory products and services. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. It serves entrepreneurs, professionals, high-net worth individuals or families, and philanthropic and business organizations. The company operates 18 profit centers, including 14 boutique private trust bank offices with 2 locations in Arizona, 9 locations in Colorado, and 3 location in Wyoming; 2 loan production offices with 1 location in Ft. Collins, Colorado, and 1 location in Greenwood Village, Colorado; and 2 trust offices with 1 location in Laramie, Wyoming, and 1 location in Century City, California. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado.
About Allegiance Bancshares (Get Rating)
Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, money market accounts, savings accounts, and other time deposits; and certificates of deposit. The company's loan portfolio comprises commercial and industrial loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machine services, drive-through services, and depository facilities; mobile banking services; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of December 31, 2021, it operated 27 full-service banking locations, including 26 bank offices in the Houston metropolitan area and one office in Beaumont. The company was founded in 2007 and is headquartered in Houston, Texas.
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