Two finance companies, First Western Financial (NASDAQ: MYFW) and Old National Bancorp (NASDAQ: ONB), are under scrutiny as investors evaluate their stock performance and potential. This article provides an in-depth comparison of the two firms based on several key financial metrics, including dividends, analyst recommendations, institutional ownership, risk levels, profitability, and overall valuation.
Valuation and Earnings
A critical evaluation of First Western Financial and Old National Bancorp reveals significant differences in their financial health. In terms of top-line revenue and earnings per share (EPS), both companies have distinct profiles. Investors should pay attention to these metrics, as they are essential in determining the stocks’ potential for growth.
Profitability Insights
Profitability is another vital factor in assessing these companies. Both firms exhibit varying net margins, return on equity, and return on assets. These figures can provide insights into how efficiently each company is managing its resources to generate profits.
Analyst ratings also play a crucial role in investment decisions. According to MarketBeat, First Western Financial has a consensus price target of $24.33, indicating a modest potential upside of 2.07%. In contrast, Old National Bancorp boasts a higher consensus price target of $26.27, suggesting a more attractive potential upside of 26.55%. Given these figures, analysts favor Old National Bancorp over First Western Financial.
Institutional ownership reflects investor confidence and market sentiment. Approximately 60.3% of shares in First Western Financial are owned by institutional investors, while a more robust 83.7% of Old National Bancorp shares are held by these entities. Insider ownership also varies, with 15.5% of First Western Financial shares held by company insiders compared to just 0.9% for Old National Bancorp.
Risk Assessment and Volatility
Risk and volatility are critical factors for potential investors. Both First Western Financial and Old National Bancorp share a beta of 0.89, indicating that their stock prices are 11% less volatile than the broader S&P 500 index. This lower volatility may appeal to investors seeking stability in a fluctuating market.
In summary, when comparing the two companies across various financial metrics, Old National Bancorp outperforms First Western Financial in 12 of the 14 factors evaluated. As such, it appears to be the more favorable option for potential investors.
Corporate Overview
First Western Financial, Inc., headquartered in Denver, Colorado, is a financial holding company that offers a range of services, including wealth advisory, private banking, personal trust, investment management, mortgage lending, and institutional asset management. It operates through two primary segments: Wealth Management and Mortgage, serving a diverse clientele that includes entrepreneurs and high net worth individuals.
On the other hand, Old National Bancorp, established in 1834 and based in Evansville, Indiana, serves as the bank holding company for Old National Bank. The company provides various financial services to both individual and commercial clients. Its offerings include deposit accounts, various loan products, online banking, private banking, and investment advisory services.
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