Head-To-Head Analysis: Esquire Financial (NASDAQ:ESQ) vs. First Capital (NASDAQ:FCAP)

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

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 2.0%. 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.

Insider & Institutional 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 will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Esquire Financial and First Capital, as reported by MarketBeat.com.

	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 price target of $122.50, indicating a potential downside of 7.64%. Given Esquire Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Esquire Financial is more favorable than First Capital.

Volatility & Risk

Esquire Financial has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, First Capital has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

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%

Valuation & Earnings

This table compares Esquire Financial and First Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Esquire Financial	$164.50 million	9.76	$50.82 million	$6.01	22.07
First Capital	$65.31 million	3.19	$16.37 million	$5.72	10.92

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.

Summary

Esquire Financial beats First Capital on 14 of the 18 factors compared between the two stocks.

About Esquire Financial

Esquire Financial Holdings, Inc. is the bank holding company for Esquire Bank, a community bank focused on serving the legal industry and small businesses. The bank offers commercial banking services, including business deposit accounts and lending, as well as payment-processing solutions. Esquire Bank provides financing to law firms and businesses connected to the legal sector, including litigation-related lending. It also serves small businesses with banking and working-capital solutions. Its specialized focus distinguishes it from banks serving a broader range of commercial customers.

About First Capital

First Capital, Inc. is a bank holding company headquartered in Corydon, Indiana. Through its subsidiary, First Harrison Bank, the company provides community banking services to individuals, families, businesses and organizations. First Harrison Bank offers deposit products, residential and commercial real estate lending, consumer loans, commercial loans and other financing solutions. Its services also include online and mobile banking, cash-management tools and related banking products designed to support personal and business financial needs.