Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) and QCR (NASDAQ:QCRH – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
Earnings and Valuation
This table compares Enterprise Financial Services and QCR”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enterprise Financial Services | $651.37 million | 3.72 | $201.37 million | $5.03 | 13.18 |
| QCR | $603.75 million | 2.82 | $127.19 million | $8.46 | 12.17 |
Profitability
This table compares Enterprise Financial Services and QCR’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enterprise Financial Services | 18.72% | 9.73% | 1.11% |
| QCR | 22.86% | 13.00% | 1.50% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Enterprise Financial Services and QCR, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enterprise Financial Services | 0 | 1 | 4 | 0 | 2.80 |
| QCR | 0 | 2 | 4 | 0 | 2.67 |
Enterprise Financial Services currently has a consensus target price of $70.00, suggesting a potential upside of 5.56%. QCR has a consensus target price of $108.75, suggesting a potential upside of 5.63%. Given QCR’s higher probable upside, analysts clearly believe QCR is more favorable than Enterprise Financial Services.
Institutional and Insider Ownership
72.2% of Enterprise Financial Services shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 2.2% of Enterprise Financial Services shares are owned by company insiders. Comparatively, 3.2% of QCR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dividends
Enterprise Financial Services pays an annual dividend of $1.40 per share and has a dividend yield of 2.1%. QCR pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Enterprise Financial Services pays out 27.8% of its earnings in the form of a dividend. QCR pays out 4.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Enterprise Financial Services has raised its dividend for 11 consecutive years. Enterprise Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Enterprise Financial Services has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Summary
Enterprise Financial Services beats QCR on 9 of the 16 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 QCR
QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.
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