Esquire Financial (NASDAQ:ESQ – Get Free Report) and First Capital (NASDAQ:FCAP – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Profitability
This table compares Esquire Financial and First Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Esquire Financial | 26.92% | 21.49% | 2.66% |
| First Capital | 27.14% | 13.67% | 1.49% |
Volatility & Risk
Esquire Financial has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, First Capital has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Institutional & Insider Ownership
54.7% of Esquire Financial shares are held by institutional investors. Comparatively, 11.7% of First Capital shares are held by institutional investors. 13.9% of Esquire Financial shares are held by insiders. Comparatively, 4.1% of First Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Esquire Financial and First Capital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Esquire Financial | $164.50 million | 9.34 | $50.82 million | $6.01 | 21.12 |
| First Capital | $65.31 million | 3.17 | $16.37 million | $5.72 | 10.84 |
Esquire Financial has higher revenue and earnings than First Capital. First Capital is trading at a lower price-to-earnings ratio than Esquire Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Esquire Financial and First Capital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Esquire Financial | 0 | 1 | 0 | 3 | 3.50 |
| First Capital | 0 | 0 | 2 | 0 | 3.00 |
Esquire Financial currently has a consensus target price of $122.50, suggesting a potential downside of 3.47%. Given Esquire Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Esquire Financial is more favorable than First Capital.
Dividends
Esquire Financial pays an annual dividend of $0.80 per share and has a dividend yield of 0.6%. First Capital pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. Esquire Financial pays out 13.3% of its earnings in the form of a dividend. First Capital pays out 22.4% 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. Esquire Financial has raised its dividend for 4 consecutive years and First Capital has raised its dividend for 2 consecutive years.
Summary
Esquire Financial beats First Capital on 14 of the 18 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 First Capital
First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.
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