Esquire Financial (NASDAQ:ESQ) versus Bancorp (NASDAQ:TBBK) Financial Review

Esquire Financial (NASDAQ:ESQ) and Bancorp (NASDAQ:TBBK) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

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	5.83	$50.82 million	$5.95	18.66
Bancorp	$689.80 million	3.32	$228.21 million	$5.14	10.71

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.

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%

Volatility and Risk

Esquire Financial has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets 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	2	1	3.00
Bancorp	0	3	6	1	2.80

Esquire Financial currently has a consensus target price of $120.33, indicating a potential upside of 8.40%. Bancorp has a consensus target price of $59.50, indicating a potential upside of 8.04%. Given Esquire Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Esquire Financial is more favorable than Bancorp.

Institutional and Insider 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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.