American Business Bank (OTCMKTS:AMBZ) and Esquire Financial (NASDAQ:ESQ) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Risk and Volatility

American Business Bank has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Esquire Financial has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for American Business Bank and Esquire Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Business Bank 0 0 0 0 N/A
Esquire Financial 0 0 1 0 3.00

Esquire Financial has a consensus price target of $28.00, suggesting a potential upside of 26.70%. Given Esquire Financial’s higher possible upside, analysts clearly believe Esquire Financial is more favorable than American Business Bank.

Profitability

This table compares American Business Bank and Esquire Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Business Bank N/A N/A N/A
Esquire Financial 19.14% 9.40% 1.38%

Earnings and Valuation

This table compares American Business Bank and Esquire Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Business Bank $57.86 million 4.28 $8.32 million N/A N/A
Esquire Financial $25.91 million 6.35 $3.64 million N/A N/A

American Business Bank has higher revenue and earnings than Esquire Financial.

Institutional and Insider Ownership

2.8% of American Business Bank shares are held by institutional investors. Comparatively, 42.6% of Esquire Financial shares are held by institutional investors. 23.3% of Esquire Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Esquire Financial beats American Business Bank on 9 of the 11 factors compared between the two stocks.

About American Business Bank

American Business Bank provides various banking and financial services to wholesalers, manufacturers, businesses, professionals, and non-profits in California. Its deposit products include checking, money market, savings, business demand deposit, business money market, special deposit, zero balance, and sweep accounts, as well as certificates of deposit. The company's loan products comprise personal loans, lines of credit, short term working capital lines, term loans, commercial/industrial real estate loans, and accounts receivable lines. It also offers various services, such as telephone notification, lock box processing, investment, courier, remote deposit, consulting, general business advice, investment banking, investment management, equipment leasing, residential mortgage lending, and professional referral services, as well as online banking services consisting of bill payment, fund transfer, account information, automatic clearing house origination, stop payment, and wire transfer services; and provides credit cards and ATM cards. In addition, the company offers international banking services, including international money transfer, letters of credit, foreign currency deposit, documentary and cleaning collection, and foreign currency exchange services. It operates through five loan production offices in Anaheim, Irvine, Torrance, the Warner Center, and Ontario. American Business Bank was founded in 1998 and is headquartered in Los Angeles, California.

About Esquire Financial

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to law professionals, professional service firms, small to mid-sized businesses, and individuals in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, including short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified merchant customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, home repairs, home improvement, or consumer purchases; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans. As of December 31, 2017, the company operated a branch in Garden City, New York; and an administrative office in Palm Beach Gardens, Florida. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

Receive News & Ratings for American Business Bank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Business Bank and related companies with MarketBeat.com's FREE daily email newsletter.