Head-To-Head Comparison: Southside Bancshares (NASDAQ:SBSI) vs. First Western Financial (NASDAQ:MYFW)

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

Valuation & Earnings

This table compares Southside Bancshares and First Western Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southside Bancshares	$248.79 million	3.75	$86.69 million	$2.77	11.10
First Western Financial	$88.93 million	2.00	$5.22 million	$0.62	29.74

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

Risk and Volatility

Southside Bancshares has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Insider and Institutional Ownership

55.7% of Southside Bancshares shares are owned by institutional investors. Comparatively, 60.3% of First Western Financial shares are owned by institutional investors. 5.9% of Southside Bancshares shares are owned by company insiders. Comparatively, 17.9% of First Western 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.

Analyst Ratings

This is a summary of recent ratings for Southside Bancshares and First Western Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southside Bancshares	0	1	0	0	2.00
First Western Financial	0	1	2	0	2.67

Southside Bancshares presently has a consensus price target of $37.00, indicating a potential upside of 20.33%. First Western Financial has a consensus price target of $23.83, indicating a potential upside of 29.25%. Given First Western Financial’s stronger consensus rating and higher possible upside, analysts clearly believe First Western Financial is more favorable than Southside Bancshares.

Profitability

This table compares Southside Bancshares and First Western Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southside Bancshares	18.94%	10.64%	1.01%
First Western Financial	3.33%	2.44%	0.20%

About Southside Bancshares

Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposits. The company’s loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other consumer related loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers wealth management and trust services consisting of investment management, administration of irrevocable, revocable, and testamentary trusts, estate administration, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. In addition, the company provides retirement and employee benefit accounts, including plans and profit sharing plans; and telephone, internet, and mobile banking services. The company offers various banking services through branches, drive-thru facilities, automated teller machines, and interactive teller machines. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.

About First Western Financial

First Western Financial, Inc., a financial holding company, provides wealth advisory, private baking, personal trust, investment management, mortgage lending, and institutional asset management services. The company operates through two segments: Wealth Management and Mortgage. The Wealth Management segment provides deposit, loan, life insurance, and trust and investment management advisory products and services. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. It serves entrepreneurs, professionals, high net worth individuals or families, and business and philanthropic organizations. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado.