Washington Trust Bancorp (NASDAQ: WASH) and Eagle Financial Services (OTCMKTS: EFSI) Critical Contrast


Washington Trust Bancorp (NASDAQ: WASHGet a rating) and Eagle Financial Services (OTCMKTS:EFSIGet a rating) are both small-cap finance companies, but which stock is superior? We’ll compare the two companies based on their dividend strength, profitability, valuation, institutional ownership, risk, earnings, and analyst recommendations.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Washington Trust Bancorp and Eagle Financial Services.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Washington Trust Bancorp $245.39 million 3.48 $76.87 million $4.16 11.83
Eagle Financial Services $54.00 million 2.28 $11.02 million $3.30 10.74

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

Institutional and Insider Ownership

77.4% of Washington Trust Bancorp shares are held by institutional investors. By comparison, 1.3% of Eagle Financial Services shares are held by institutional investors. 1.4% of Washington Trust Bancorp shares are held by insiders. By comparison, 12.9% of Eagle Financial Services shares are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.

Dividends

Washington Trust Bancorp pays an annual dividend of $2.16 per share and has a dividend yield of 4.4%. Eagle Financial Services pays an annual dividend of $1.12 per share and has a dividend yield of 3.2%. Washington Trust Bancorp pays 51.9% of its profits as a dividend. Eagle Financial Services pays 33.9% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Washington Trust Bancorp has increased its dividend for 12 consecutive years. Washington Trust Bancorp is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of the current recommendations for Washington Trust Bancorp and Eagle Financial Services, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Washington Trust Bancorp 0 2 0 0 2.00
Eagle Financial Services 0 0 0 0 N / A

Washington Trust Bancorp currently has a consensus target price of $56.00, suggesting a potential upside of 13.77%. Given Washington Trust Bancorp’s likely higher upside, research analysts clearly believe that Washington Trust Bancorp is more favorable than Eagle Financial Services.

Profitability

This table compares the net margins, return on equity and return on assets of Washington Trust Bancorp and Eagle Financial Services.

Net margins Return on equity return on assets
Washington Trust Bancorp 30.69% 13.35% 1.24%
Eagle Financial Services 20.26% 10.62% 0.89%

Risk and Volatility

Washington Trust Bancorp has a beta of 0.74, suggesting its stock price is 26% less volatile than the S&P 500. In comparison, Eagle Financial Services has a beta of 0.58, suggesting its stock price is 42% less volatile than the S&P 500.

Summary

Washington Trust Bancorp beats Eagle Financial Services on 13 out of 15 factors compared between the two stocks.

About Washington Trust Bancorp (Get a rating)

Washington Trust Bancorp, Inc. operates as a bank holding company for The Washington Trust Company, of Westerly, which provides a variety of banking and financial services to individuals and businesses. The Company operates in two segments, commercial banking services and wealth management services. The Commercial Banking segment offers various commercial and retail lending products, such as commercial real estate loans, including commercial mortgage loans and construction loans; commercial and industrial loans; residential real estate loans which consist of homeowner mortgages and construction loans; and consumer loans including home equity loans and lines of credit, personal installment loans and personal loans secured by general aviation aircraft. This segment also offers deposit accounts, including interest-bearing and non-interest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts and term deposits, as well as debit cards, ATMs, telephone banking, Internet banking, mobile banking, remote deposit collection and other cash management services. The Wealth Management Services segment provides investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian and guardian; and settling the estates of deceased persons, as well as institutional trust services including custodial and trustee services. This segment serves retail and institutional clients. The company also operates as a licensed broker; and offers variable annuities and education savings plans. As of December 31, 2021, it had 10 branches located in southern Rhode Island, 13 branches located in the greater Providence area of ​​Rhode Island, and 1 branch located in southeastern Connecticut. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.

About Eagle Financial Services (Get a rating)

Eagle Financial Services, Inc. operates as a bank holding company for Bank of Clarke County which provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. The Company’s deposit products include checking, NOW, money market and regular savings accounts; and sight and term deposits. Its loan portfolio includes residential real estate for one to four families, commercial real estate, construction and land development loans, commercial and industrial loans, as well as secured and unsecured consumer loans. , which include personal installment loans, personal lines of credit, car loans and credit card loans. The company also offers services to individuals and pension plans; investment services including tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, education savings plans, life insurance, long-term care insurance, investments fixed income, brokerage CDs and full or discount brokerage services; investment products other than deposits; and title insurance products. Additionally, it provides ATM and debit cards; and telephone, Internet, and mobile banking, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through twelve full-service branches, two loan origination offices, a wealth management office and a drive-thru only, as well as 13 ATMs in the Virginia communities of Berryville, Winchester, Boyce, Stephens City , Purcellville, Warrenton, Leesburg, Ashburn and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.



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