Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) and CrossFirst Bankshares (NASDAQ:CFB – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
72.2% of Enterprise Financial Services shares are held by institutional investors. Comparatively, 56.3% of CrossFirst Bankshares shares are held by institutional investors. 2.3% of Enterprise Financial Services shares are held by insiders. Comparatively, 9.3% of CrossFirst Bankshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Enterprise Financial Services and CrossFirst Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enterprise Financial Services | 19.73% | 10.81% | 1.24% |
| CrossFirst Bankshares | 14.52% | 10.72% | 1.04% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enterprise Financial Services | $527.63 million | 4.26 | $194.06 million | $4.72 | 12.84 |
| CrossFirst Bankshares | $455.82 million | 1.87 | $66.67 million | $1.47 | 11.78 |
Enterprise Financial Services has higher revenue and earnings than CrossFirst Bankshares. CrossFirst Bankshares is trading at a lower price-to-earnings ratio than Enterprise Financial Services, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Enterprise Financial Services has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, CrossFirst Bankshares has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Enterprise Financial Services and CrossFirst Bankshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enterprise Financial Services | 0 | 0 | 3 | 0 | 3.00 |
| CrossFirst Bankshares | 0 | 0 | 4 | 0 | 3.00 |
Enterprise Financial Services currently has a consensus price target of $52.00, suggesting a potential downside of 14.18%. CrossFirst Bankshares has a consensus price target of $18.50, suggesting a potential upside of 6.87%. Given CrossFirst Bankshares’ higher possible upside, analysts clearly believe CrossFirst Bankshares is more favorable than Enterprise Financial Services.
Summary
Enterprise Financial Services beats CrossFirst Bankshares 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 CrossFirst Bankshares
CrossFirst Bankshares, Inc. operates as the bank holding company for CrossFirst Bank that provides various banking and financial services to businesses, business owners, professionals, and its personal networks. The company offers commercial and industrial loans, including enterprise value lending; commercial real estate loans; construction and development loans, such as home builder lending; residential real estate, multifamily real estate, energy, SBA, and consumer loans; and credit cards. It also provides deposit banking products, including personal and business checking and savings accounts; treasury management services; money market accounts; certificates of deposits; negotiable order of withdrawal accounts; automated teller machine access; and mobile banking and international banking services, as well as non-interest-bearing demand deposits and interest-bearing deposits, including transaction accounts. In addition, the company acquires brokered deposits, internet subscription certificates of deposit, and reciprocal deposits. Further, it holds investments in marketable securities. The company serves its clients though branch network, as well as digital banking products. It has full-service banking offices in Kansas, Missouri, Oklahoma, Texas, Arizona, Colorado, and New Mexico. CrossFirst Bankshares, Inc. was founded in 2007 and is headquartered in Leawood, Kansas.
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