Investors are turning their attention to the comparative performance of two financial companies: First Western Financial and Old National Bancorp. An analysis of various metrics reveals insights into their stock potential, including dividend strength, analyst recommendations, and risk factors.
Valuation and Earnings
The financial metrics for First Western Financial (NASDAQ: MYFW) and Old National Bancorp (NASDAQ: ONB) show notable differences. First Western Financial has a consensus price target of $24.33, suggesting a modest potential upside of 2.07%. In contrast, Old National Bancorp enjoys a higher consensus price target of $26.27, which translates to a more promising potential upside of 26.55%. This significant difference indicates that analysts generally view Old National Bancorp as the more attractive investment option.
Profitability Metrics
Profitability remains a crucial aspect in evaluating both firms. The analysis of net margins, return on equity, and return on assets reveals that Old National Bancorp outperforms First Western Financial across most profitability measures. This strong financial performance contributes to the positive outlook held by analysts regarding Old National Bancorp.
Analyst Ratings and Institutional Ownership
According to data from MarketBeat, Old National Bancorp holds a stronger consensus rating than First Western Financial. Institutional ownership also reflects investor confidence; approximately 60.3% of First Western Financial shares are held by institutional investors, while a robust 83.7% of Old National Bancorp shares are owned by institutions. This suggests that larger financial entities view Old National Bancorp as having greater long-term growth potential.
Additionally, insider ownership shows stark contrast. 15.5% of First Western Financial shares are held by company insiders, compared to only 0.9% of Old National Bancorp shares. High institutional ownership often indicates trust in a company’s future performance.
Risk and Volatility
Both companies exhibit similar volatility profiles, with a beta of 0.89. This figure indicates that their stock prices are approximately 11% less volatile than the broader S&P 500 index. Such stability can be appealing to risk-averse investors looking for reliable investment opportunities.
Company Profiles
First Western Financial, headquartered in Denver, Colorado, operates primarily in wealth advisory and private banking services. The firm was established in 2002 and provides various financial solutions, including investment management and mortgage lending. It serves diverse clientele, including high-net-worth individuals and philanthropic organizations.
On the other hand, Old National Bancorp, founded in 1834 and based in Evansville, Indiana, functions as the parent company of Old National Bank. It offers a wide range of financial services, including deposit accounts, loans, and investment advisory services. This extensive portfolio positions Old National Bancorp favorably in the competitive financial services market.
In summary, the comparative analysis indicates that Old National Bancorp surpasses First Western Financial in 12 of the 14 factors evaluated. As investors weigh their options, the data clearly points to Old National Bancorp as the more favorable stock choice, driven by stronger analyst ratings, greater institutional backing, and superior profitability metrics.
