Esquire Financial (NASDAQ:ESQ – Get Free Report) and Bancorp (NASDAQ:TBBK – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Profitability
This table compares Esquire Financial and Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Esquire Financial | 29.96% | 18.30% | 2.30% |
| Bancorp | 26.92% | 30.56% | 2.52% |
Earnings and Valuation
This table compares Esquire Financial and Bancorp”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Esquire Financial | $164.50 million | 5.54 | $50.82 million | $5.95 | 17.72 |
| Bancorp | $879.70 million | 2.57 | $228.21 million | $5.14 | 10.55 |
Bancorp has higher revenue and earnings than Esquire Financial. Bancorp is trading at a lower price-to-earnings ratio than Esquire Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
54.7% of Esquire Financial shares are held by institutional investors. Comparatively, 96.2% of Bancorp shares are held by institutional investors. 18.0% of Esquire Financial shares are held by insiders. Comparatively, 6.0% of Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Esquire Financial and Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Esquire Financial | 0 | 1 | 1 | 2 | 3.25 |
| Bancorp | 0 | 3 | 6 | 1 | 2.80 |
Esquire Financial currently has a consensus target price of $120.33, indicating a potential upside of 14.14%. Bancorp has a consensus target price of $59.50, indicating a potential upside of 9.72%. Given Esquire Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Esquire Financial is more favorable than Bancorp.
Risk and Volatility
Esquire Financial has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
Summary
Esquire Financial beats Bancorp on 8 of the 15 factors compared between the two stocks.
About Esquire Financial
Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, such as short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified ISO customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, medical expenses, living expenses, payment of outstanding bills, or other consumer needs; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans, as well as merchant services. In addition, it offers cash management, cash sweep, online and mobile banking, individual retirement accounts, and working capital lines of credit. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.
About Bancorp
The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.
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