Contrasting First Western Financial (NASDAQ:MYFW) and Cullen/Frost Bankers (NYSE:CFR)

Cullen/Frost Bankers (NYSE:CFR) and First Western Financial (NASDAQ:MYFW) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings and Valuation

This table compares Cullen/Frost Bankers and First Western Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cullen/Frost Bankers	$2.92 billion	3.28	$648.56 million	$10.58	14.56
First Western Financial	$186.36 million	1.57	$13.19 million	$1.86	16.13

Cullen/Frost Bankers has higher revenue and earnings than First Western Financial. Cullen/Frost Bankers 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 Recommendations

This is a breakdown of recent recommendations for Cullen/Frost Bankers and First Western Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cullen/Frost Bankers	1	7	5	0	2.31
First Western Financial	0	3	2	0	2.40

Cullen/Frost Bankers presently has a consensus target price of $170.18, indicating a potential upside of 10.49%. First Western Financial has a consensus target price of $32.33, indicating a potential upside of 7.74%. Given Cullen/Frost Bankers’ higher probable upside, equities research analysts clearly believe Cullen/Frost Bankers is more favorable than First Western Financial.

Profitability

This table compares Cullen/Frost Bankers and First Western Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cullen/Frost Bankers	23.34%	15.55%	1.29%
First Western Financial	9.50%	6.82%	0.57%

Risk and Volatility

Cullen/Frost Bankers has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

86.9% of Cullen/Frost Bankers shares are owned by institutional investors. Comparatively, 60.3% of First Western Financial shares are owned by institutional investors. 1.1% of Cullen/Frost Bankers shares are owned by company insiders. Comparatively, 13.1% 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 stock will outperform the market over the long term.

Summary

Cullen/Frost Bankers beats First Western Financial on 10 of the 14 factors compared between the two stocks.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, 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.