Equity Bancshares (NASDAQ:EQBK) & First Financial Bankshares (NASDAQ:FFIN) Critical Survey

Equity Bancshares (NASDAQ:EQBK) and First Financial Bankshares (NASDAQ:FFIN) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

64.8% of Equity Bancshares shares are owned by institutional investors. Comparatively, 44.4% of First Financial Bankshares shares are owned by institutional investors. 8.6% of Equity Bancshares shares are owned by insiders. Comparatively, 4.4% of First Financial Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Equity Bancshares has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, First Financial Bankshares has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Equity Bancshares and First Financial Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Bancshares 0 1 1 0 2.50
First Financial Bankshares 1 2 0 0 1.67

Equity Bancshares currently has a consensus target price of $22.00, suggesting a potential downside of 6.10%. First Financial Bankshares has a consensus target price of $30.00, suggesting a potential downside of 24.15%. Given Equity Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Equity Bancshares is more favorable than First Financial Bankshares.

Profitability

This table compares Equity Bancshares and First Financial Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity Bancshares -42.38% 5.26% 0.61%
First Financial Bankshares 38.10% 12.42% 1.90%

Earnings and Valuation

This table compares Equity Bancshares and First Financial Bankshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity Bancshares $200.49 million 1.74 $25.58 million $1.77 13.24
First Financial Bankshares $427.62 million 13.14 $164.81 million $1.21 32.69

First Financial Bankshares has higher revenue and earnings than Equity Bancshares. Equity Bancshares is trading at a lower price-to-earnings ratio than First Financial Bankshares, indicating that it is currently the more affordable of the two stocks.

Summary

First Financial Bankshares beats Equity Bancshares on 8 of the 14 factors compared between the two stocks.

About Equity Bancshares

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of financial services primarily to businesses, business owners, and individuals. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loans, as well as letters of credit and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company's loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans, home equity lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of December 31, 2019, it operated 52 full-service branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company accepts checking, savings, and time deposits; and offers real estate, commercial, agricultural, and consumer loans to businesses, professionals, individuals, and farm and ranch operations. It also provides drive-in and night deposit, remote deposit capture, Internet and mobile banking, payroll card, transmitting funds, and other customary commercial banking services, as well as automated teller machines and safe deposit facilities. In addition, the company offers personal trust services, including wealth management, administration of estates, testamentary trusts, revocable and irrevocable trusts, and agency accounts; and securities brokerage services, as well as administer retirement and employee benefit accounts, such as 401(k) profit sharing plans and IRAs. Further, the company provides asset management and technology services. As of January 1, 2020, it had 78 financial centers across Texas. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

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