Head-To-Head Analysis: Eagle Financial Services (EFSI) and Its Rivals

Eagle Financial Services (NASDAQ:EFSI) is one of 317 public companies in the “State commercial banks” industry, but how does it weigh in compared to its rivals? We will compare Eagle Financial Services to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Eagle Financial Services and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Financial Services	0	0	2	0	3.00
Eagle Financial Services Competitors	2196	11314	7642	355	2.29

Eagle Financial Services presently has a consensus price target of $40.00, indicating a potential upside of 22.14%. As a group, “State commercial banks” companies have a potential upside of 20.10%. Given Eagle Financial Services’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Eagle Financial Services is more favorable than its rivals.

Institutional and Insider Ownership

0.3% of Eagle Financial Services shares are held by institutional investors. Comparatively, 54.0% of shares of all “State commercial banks” companies are held by institutional investors. 12.3% of Eagle Financial Services shares are held by company insiders. Comparatively, 10.7% of shares of all “State commercial banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.8%. Eagle Financial Services pays out 28.7% of its earnings in the form of a dividend. As a group, “State commercial banks” companies pay a dividend yield of 2.5% and pay out 31.2% of their earnings in the form of a dividend. Eagle Financial Services has increased its dividend for 14 consecutive years. Eagle Financial Services is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk and Volatility

Eagle Financial Services has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Eagle Financial Services’ rivals have a beta of 0.55, suggesting that their average share price is 45% less volatile than the S&P 500.

Profitability

This table compares Eagle Financial Services and its rivals’ 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%
Eagle Financial Services Competitors	16.71%	9.95%	0.91%

Earnings and Valuation

This table compares Eagle Financial Services and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Eagle Financial Services	$65.83 million	$15.34 million	7.58
Eagle Financial Services Competitors	$2.39 billion	$306.37 million	22.18

Eagle Financial Services’ rivals have higher revenue and earnings than Eagle Financial Services. Eagle Financial Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Eagle Financial Services rivals beat Eagle Financial Services on 8 of the 15 factors compared.

Eagle Financial Services Company Profile

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. 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 personal and retirement plan services; investment services comprising tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, college savings plans, life insurance, long term care insurance, fixed income investing, brokerage CDs, and full service or discount brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; 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 twelve full-service branches, two loan production offices, one wealth management office, and one drive-through only facility, as well as 13 ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.