Financial Review: First Western Financial (NASDAQ:MYFW) vs. Wintrust Financial (NASDAQ:WTFC)

Wintrust Financial (NASDAQ:WTFC) and First Western Financial (NASDAQ:MYFW) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wintrust Financial	18.85%	12.82%	1.20%
First Western Financial	6.91%	4.91%	0.42%

Institutional & Insider Ownership

93.5% of Wintrust Financial shares are owned by institutional investors. Comparatively, 60.3% of First Western Financial shares are owned by institutional investors. 1.0% of Wintrust Financial shares are owned by insiders. Comparatively, 15.5% of First Western Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Wintrust Financial has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Valuation and Earnings

This table compares Wintrust Financial 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
Wintrust Financial	$3.97 billion	2.46	$695.04 million	$10.88	13.41
First Western Financial	$180.33 million	1.42	$8.47 million	$1.29	20.49

Wintrust Financial has higher revenue and earnings than First Western Financial. Wintrust Financial 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Wintrust Financial and First Western Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wintrust Financial	0	2	11	1	2.93
First Western Financial	0	3	2	0	2.40

Wintrust Financial currently has a consensus target price of $154.33, indicating a potential upside of 5.78%. First Western Financial has a consensus target price of $24.33, indicating a potential downside of 7.93%. Given Wintrust Financial’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Wintrust Financial is more favorable than First Western Financial.

Summary

Wintrust Financial beats First Western Financial on 13 of the 15 factors compared between the two stocks.

About Wintrust Financial

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; other specialty finance services; equipment financing through structured loan and lease products; and property and casualty premium financing; as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides wealth management services, such as trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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.