Analyzing Eagle Financial Services (OTCMKTS:EFSI) & Triumph Financial (NASDAQ:TFIN)

Eagle Financial Services (OTCMKTS:EFSI) and Triumph Financial (NASDAQ:TFIN) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

Eagle Financial Services has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Insider & Institutional Ownership

0.3% of Eagle Financial Services shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 8.7% of Eagle Financial Services shares are owned by company insiders. Comparatively, 5.6% of Triumph Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Eagle Financial Services and Triumph Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Financial Services	$65.83 million	2.62	$15.34 million	$2.07	15.49
Triumph Financial	$415.91 million	3.40	$16.09 million	$0.37	163.22

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

Profitability

This table compares Eagle Financial Services and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Financial Services	13.59%	10.92%	0.67%
Triumph Financial	3.30%	1.93%	0.28%

Analyst Recommendations

This is a summary of current ratings and price targets for Eagle Financial Services and Triumph Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Financial Services	0	0	0	0	0.00
Triumph Financial	1	4	0	0	1.80

Triumph Financial has a consensus price target of $68.20, suggesting a potential upside of 12.93%. Given Triumph Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Triumph Financial is more favorable than Eagle Financial Services.

Summary

Triumph Financial beats Eagle Financial Services on 8 of the 13 factors compared between the two stocks.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke that provides various retail and commercial banking products and services in the Shenandoah Valley, Northern Virginia and Frederick, Maryland. It operates through three segments: Community Banking, Marine Lending, and Wealth Management. The company's deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers fiduciary services; advisory services and investment products, including individual retirement accounts, mutual funds, tax-deferred annuities, 529 college savings plans, life insurance, long term care insurance, brokerage certificates of deposit, and other brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; online bill payment services; wealth management services; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through full-service branches, loan production offices, drive-through only facility, and ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax, as well as Maryland community of Frederick. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.

About Triumph Financial

Triumph Financial, Inc., a financial holding company, provides various payments, factoring, and banking services in the United States. It operates through Banking, Factoring, and Payments segments. The company offers deposit products, including checking, savings, money market and certificates of deposit; and loan products, such as commercial real estate, land, commercial construction and land development, residential real estate, commercial agriculture, and consumer loans, as well as commercial and industrial loans, equipment loans, asset-based loans, business loans for working capital and operational purposes, and liquid credit loans. It also provides electronic banking services, debit cards, insurance brokerage services, mortgage warehouse facilities, and transportation factoring services, as well as payments services offered through TriumphPay platform, a payments network for the over-the-road trucking industry. The company was formerly known as Triumph Bancorp, Inc. and changed its name to Triumph Financial Inc. in December 2022. Triumph Financial Inc. was incorporated in 2003 and is headquartered in Dallas, Texas.