Esquire Financial (NASDAQ:ESQ) and Royal Bank of Scotland Group (NYSE:RBS) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

43.0% of Esquire Financial shares are owned by institutional investors. Comparatively, 0.6% of Royal Bank of Scotland Group shares are owned by institutional investors. 23.3% of Esquire Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Esquire Financial and Royal Bank of Scotland Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Esquire Financial $36.81 million 4.42 $8.73 million N/A N/A
Royal Bank of Scotland Group $20.84 billion 2.09 $2.79 billion $0.48 15.06

Royal Bank of Scotland Group has higher revenue and earnings than Esquire Financial.

Profitability

This table compares Esquire Financial and Royal Bank of Scotland Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Esquire Financial 23.73% 11.08% 1.60%
Royal Bank of Scotland Group 12.91% 5.21% 0.35%

Volatility and Risk

Esquire Financial has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Esquire Financial and Royal Bank of Scotland Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Esquire Financial 0 0 1 0 3.00
Royal Bank of Scotland Group 0 2 7 0 2.78

Esquire Financial presently has a consensus target price of $28.00, indicating a potential upside of 28.15%. Given Esquire Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Esquire Financial is more favorable than Royal Bank of Scotland Group.

Dividends

Royal Bank of Scotland Group pays an annual dividend of $0.10 per share and has a dividend yield of 1.4%. Esquire Financial does not pay a dividend. Royal Bank of Scotland Group pays out 20.8% of its earnings in the form of a dividend.

Summary

Esquire Financial beats Royal Bank of Scotland Group on 10 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 law professionals, professional service firms, small to mid-sized businesses, and individuals 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, including 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 merchant 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, home repairs, home improvement, or consumer purchases; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans. As of December 31, 2017, the company operated a branch in Garden City, New York; and an administrative office in Palm Beach Gardens, Florida. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

About Royal Bank of Scotland Group

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company also offers wealth management, financial planning, investment management, asset finance, and offshore banking; and financing and risk solutions, as well as trading and flow sales services. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

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