Comparing CrossFirst Bankshares and Enterprise Financial Services: A Detailed Analysis

CrossFirst Bankshares (NASDAQ:CFB) and Enterprise Financial Services (NASDAQ:EFSC) are reputable companies in the financial sector. This article aims to evaluate which of the two stocks is the better investment choice by assessing various factors, including institutional ownership, risk, valuation, earnings, analyst recommendations, profitability, and dividends.

Profitability

The profitability of these two institutions can be seen through their net margins, return on equity, and return on assets. Below is a comparison of their financial metrics:

	Net Margins	Return on Equity	Return on Assets
CrossFirst Bankshares	14.52%	10.72%	1.04%
Enterprise Financial Services	19.73%	10.81%	1.24%

From this table, it is clear that Enterprise Financial Services has a higher net margin and better returns on assets compared to CrossFirst Bankshares.

Analyst Ratings

Next, we review the current analyst ratings and target prices for both companies:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CrossFirst Bankshares	0	0	4	0	3.00
Enterprise Financial Services	0	0	3	0	3.00

CrossFirst Bankshares holds a consensus price target of $18.50, suggesting a potential upside of 6.87%. On the other hand, Enterprise Financial Services has a price target of $52.00, indicating a potential downside of 14.18%. This shows that analysts currently view CrossFirst Bankshares as a more favorable investment given its higher potential upside.

Valuation and Earnings

In terms of valuation and earnings, the following table provides insights into top-line revenue and earnings per share (EPS) for both companies:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CrossFirst Bankshares	$455.82 million	1.87	$66.67 million	$1.47	11.78
Enterprise Financial Services	$527.63 million	4.26	$194.06 million	$4.72	12.84

Enterprise Financial Services shows higher revenue and earnings compared to CrossFirst Bankshares. However, CrossFirst appears to be the more affordable option based on its lower price-to-earnings ratio.

Institutional & Insider Ownership

Looking at ownership structures, 56.3% of CrossFirst Bankshares shares are held by institutional investors, while Enterprise Financial Services has a higher institutional ownership of 72.2%. Additionally, insider ownership stands at 9.3% for CrossFirst Bankshares compared to 2.3% for Enterprise Financial Services. A stronger institutional ownership usually indicates confidence from large investors regarding a company’s long-term potential.

Risk and Volatility

When assessing risk, it’s important to know the volatility of the stocks involved. CrossFirst Bankshares has a beta of 1.04, suggesting its stock is about 4% more volatile than the S&P 500 index. On the flip side, Enterprise Financial Services has a beta of 0.96, indicating it is about 4% less volatile than the index. This means that Enterprise Financial Services may present less risk for investors who favor stability.

Conclusion

In summary, when comparing CrossFirst Bankshares and Enterprise Financial Services, we find that Enterprise Financial Services leads in several areas, outperforming CrossFirst Bankshares in 9 out of 13 evaluated factors, indicating a generally stronger position in the market.

About CrossFirst Bankshares

CrossFirst Bankshares serves as the bank holding company for CrossFirst Bank, offering a wide range of banking and financial services tailored to businesses and individual customers. They provide loans, deposit accounts, and various banking products through their branches and digital platforms across multiple states, including Kansas, Missouri, Oklahoma, and Texas.

About Enterprise Financial Services

Enterprise Financial Services Corp is the holding company for Enterprise Bank & Trust, which offers banking and wealth management services to both individuals and corporations in various regions including Arizona, California, and Missouri. They also provide an array of financial products such as loans, savings accounts, and investment services.

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