Head to Head Survey: Premier Financial (NASDAQ:PFC) vs. First Western Financial (NASDAQ:MYFW)

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

Risk and Volatility

Premier Financial has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Premier Financial	18.07%	8.19%	0.91%
First Western Financial	3.93%	2.86%	0.24%

Valuation & Earnings

This table compares Premier Financial 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
Premier Financial	$456.36 million	1.92	$111.29 million	$3.10	7.88
First Western Financial	$167.52 million	1.10	$5.22 million	$0.77	24.80

Premier Financial has higher revenue and earnings than First Western Financial. Premier 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 summary of recent recommendations and price targets for Premier Financial and First Western Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premier Financial	0	3	1	0	2.25
First Western Financial	0	1	2	0	2.67

Premier Financial currently has a consensus target price of $22.50, suggesting a potential downside of 7.90%. First Western Financial has a consensus target price of $22.17, suggesting a potential upside of 16.09%. Given First Western Financial’s stronger consensus rating and higher probable upside, analysts plainly believe First Western Financial is more favorable than Premier Financial.

Institutional & Insider Ownership

66.1% of Premier Financial shares are held by institutional investors. Comparatively, 60.3% of First Western Financial shares are held by institutional investors. 2.2% of Premier Financial shares are held by insiders. Comparatively, 17.9% of First Western Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Premier Financial beats First Western Financial on 9 of the 14 factors compared between the two stocks.

About Premier Financial

Premier Financial Corp., through its subsidiaries, provides various banking services. It offers demand, checking, money market, and savings accounts, as well as certificates of deposits and certificates of deposit account registry service; and investment products. The company also provides residential and commercial real estate, commercial, construction, home improvement and home equity, installment, and consumer loans. In addition, it invests in the U.S. treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities that are issued by federal agencies, residential collateralized mortgage obligations, and corporate bonds. Further, the company offers property and casualty, life, and group health insurance agency services; mezzanine funding services; and digital banking services, which include mobile banking, zelle, online bill pay, and online account opening, as well as the MoneyPass ATM network. It operates in Ohio, Michigan, Indiana, Pennsylvania, and West Virginia. The company was formerly known as First Defiance Financial Corp. and changed its name to Premier Financial Corp. in June 2020. Premier Financial Corp. was founded in 1920 and is headquartered in Defiance, Ohio.

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.