Contrasting Emclaire Financial (NASDAQ:EMCF) & Westamerica Bancorporation (NASDAQ:WABC)

Emclaire Financial (NASDAQ:EMCF) and Westamerica Bancorporation (NASDAQ:WABC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Risk and Volatility

Emclaire Financial has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Insider and Institutional Ownership

6.4% of Emclaire Financial shares are owned by institutional investors. Comparatively, 82.1% of Westamerica Bancorporation shares are owned by institutional investors. 16.6% of Emclaire Financial shares are owned by company insiders. Comparatively, 4.4% of Westamerica Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Emclaire Financial pays an annual dividend of $1.16 per share and has a dividend yield of 3.5%. Westamerica Bancorporation pays an annual dividend of $1.64 per share and has a dividend yield of 2.5%.

Profitability

This table compares Emclaire Financial and Westamerica Bancorporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emclaire Financial 16.34% 8.55% 0.74%
Westamerica Bancorporation 38.24% 11.75% 1.41%

Earnings and Valuation

This table compares Emclaire Financial and Westamerica Bancorporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emclaire Financial $35.17 million 2.51 $4.21 million N/A N/A
Westamerica Bancorporation $199.87 million 9.00 $71.56 million N/A N/A

Westamerica Bancorporation has higher revenue and earnings than Emclaire Financial.

Analyst Recommendations

This is a breakdown of recent ratings for Emclaire Financial and Westamerica Bancorporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emclaire Financial 0 0 0 0 N/A
Westamerica Bancorporation 0 2 0 0 2.00

Westamerica Bancorporation has a consensus target price of $58.00, indicating a potential downside of 12.81%. Given Westamerica Bancorporation’s higher possible upside, analysts plainly believe Westamerica Bancorporation is more favorable than Emclaire Financial.

Summary

Westamerica Bancorporation beats Emclaire Financial on 10 of the 12 factors compared between the two stocks.

About Emclaire Financial

Emclaire Financial Corp operates as the bank holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania. The company's deposit products include checking, savings, and term certificate accounts; time deposits; noninterest bearing and interest bearing demand deposit accounts; and money market accounts. Its loan portfolio comprises one-to-four family mortgage loans, residential and commercial mortgages loans, home equity loans, and commercial business and commercial real estate loans; and consumer loans, such as loans for automobile purchases, home improvements not secured by real estate, capital, and other personal expenditures, as well as unsecured revolving personal lines of credit and overdraft protection. The company, through its subsidiary, Emclaire Settlement Services, LLC, also provides real estate settlement services. As of February 20, 2019, it operated 20 full service offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer counties in Pennsylvania, as well as in Hancock County, West Virginia. The company was founded in 1900 and is headquartered in Emlenton, Pennsylvania.

About Westamerica Bancorporation

Westamerica Bancorporation provides banking solutions. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. The company's deposits include jumbo deposits and retail time deposits. The company provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The company offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. The company offers domestic and foreign commercial and industrial loans. The bank offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, the company has an asset value of 5.6 million USD. It has generated a net income of 71,564 USD in December 31, 2017. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in December 1982. Westamerica Bancorporation was founded in 1972 and is based in San Rafael, California.

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